(Reuters) – Citron Capital founder and short seller Andrew Left is seeking to have the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) dismissed. The SEC has accused Left of misleading investors and making millions of dollars through his social media comments.
Left’s lawyer, James Spertus, argued in a court filing that the SEC’s case “fails to state a claim because it neither alleges a cognizable theory of fraud nor alleges sufficient facts to support the theory alleged”.
In July, the SEC and the U.S. Justice Department accused Left of market manipulation and defrauding investors by making misleading claims about his positions in stocks such as Nvidia and Tesla.
The federal authorities claim that Left used his social media platform and cable news appearances to promote his trades, only to quickly reverse his positions and profit up to $20 million in the process.
The trial for Left has been scheduled for September 30, 2025, by a Federal judge in Los Angeles. Originally, the trial was set for September of this year.
Left, who maintains his innocence, has been a prominent figure in the “short activist” community for over a decade. These activists bet against public companies they believe are overvalued or engaging in fraudulent activities.
Both Left’s lawyer Spertus and the U.S. SEC have yet to respond to requests for comment from Reuters.