Andrew Left, the Citron Research founder who built his reputation short-selling companies including Tesla (NASDAQ: TSLA), Nvidia (NASDAQ: NVDA) and Meta (NASDAQ: META), says the guilty verdict in his criminal trial left him “speechless.”
In a text exchange with journalist Aaron Ross Sorkin on Monday night, Left wrote: “I was actually criminally convicted on manipulating Nvidia Facebook and Tesla for telling the truth and making a profit. I am a bit speechless.”
Left was convicted of 12 counts of securities fraud and one count of taking part in a securities fraud scheme, and now faces up to 25 years in prison.
He is currently free and is scheduled to be sentenced at the end of August.
The Justice Department alleged Left “made false and misleading statements asserting that the market incorrectly valued a company’s stock and advocating that the current price was too high or too low.”
Prosecutors further alleged he “knowingly exploited his ability to move stock prices” by “posting recommendations on social media to manipulate the market and make fast, easy money,” claiming he made “more than $21 million” in the process.
During the trial, Left argued: “It’s the stock market. I say what I believe. I speak truth. If people want to read it, read it.”
One government witness accused Left of executing “U-turn” trades, promoting one stance on a stock publicly to move the price and then trading counter to that position, “sometimes within minutes,” in stocks including Tesla, Nvidia and Roku.
The jury also heard allegations that Left worked in tandem with hedge funds, reportedly boasting that his short position on a stock meant they could “take candy from a baby,” referencing those who acted on his public forecasts.
Following the verdict, Left appeared to signal an appeal, stating: “I think the jury got it wrong. Obviously, this is not the end of the road for us.”
On X, Left posted: “Today I was found guilty. Amongst other things, for recommending Tesla, Nvidia and Meta back in 2018,” adding “there were no false statements. So now a truthful opinion that ends up making money is illegal. Is this America?”
His post was tagged with a community note clarifying that he “was found guilty of falsely stating his own positions on social media to pump stocks before selling — not for giving honest opinions on Tesla, Nvidia, or Meta,” an ironic detail given that X is owned by Tesla CEO Elon Musk, who has publicly called short-selling a practice that “should definitely be illegal.”
Yale School of Management accounting professor Frank Zhang told Bloomberg the verdict “sets a dangerous precedent for short sellers, who now fear that publishing negative research and exiting trades quickly will trigger federal audits and market manipulation charges,” warning it will “scare them into silence.”
Attorney Ariel Givner, speaking separately to Business Insider, said the verdict will place “a bigger target between public statements and private trading,” noting that “now we have a jury showing that they’re not afraid to convict on it.”
