Short seller Andrew Left convicted of fraud

Prominent activist short seller Andrew Left has been convicted of securities fraud by a federal jury in Los Angeles, a verdict that is sending ripples through the financial world. The founder of Citron Research was found guilty late Monday on one count of participating in a securities fraud scheme and 12 counts of securities fraud, while being acquitted on four other counts.

Prosecutors alleged that between 2018 and 2023, Left used his substantial public platform, including social media posts and mainstream media appearances, to manipulate stock prices for personal gain. Authorities described a "short-and-distort" scheme in which he would take a position in a stock, disseminate commentary to move its price in a direction beneficial to his holdings, and then quickly exit the trade to capture profits. Officials estimate the scheme generated more than $20 million in illicit gains.

The conviction followed a three-week trial that put a spotlight on the practices of activist investors. Prosecutors presented evidence, including private messages and trading records, which they argued showed a conflict between Left's public statements and his private trading intentions. They cited...