SEC Sues Citron Capital, Alleges Andrew Left Orchestrated $20M ‘Bait Trade’

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The US SEC charges Andrew Left and his firm Citron Capital for being involved in $20M “bait trade” stock recommendations.
Left used media platforms to falsely promote stocks, which he said were his short or long trades.
The DOJ filed a criminal case against Left, as well, for securities fraud and market manipulation.

The U.S. Securities and Exchange Commission has filed a lawsuit against activist short seller Andrew Left and his firm Citron Capital, alleging securities fraud. According to a July 26 statement, Left allegedly engaged in a years-long scheme involving $20 million in misleading “bait trade” stock recommendations aimed at retail investors.

The SEC alleges that Left used social media platforms and television appearances to recommend stocks, claiming they were his own short or long trades. This misled investors into believing his public comments aligned with his firm’s trading activity. However, the SEC claims that he often executed the opposite trades. By deceiving investors, Left allegedly used Citron Research reports and X (formerly Twitter) posts to trigger price movements, allowing him to profit in the short term.

Kate Zoladz, Director of…

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