NEW YORK - Mullen Automotive Inc. (NASDAQ:MULN) has initiated legal action against UBS Securities and other entities, accusing them of market manipulation that resulted in the issuance of approximately 5 billion shares at deflated prices. The electric vehicle (EV) company's lawsuit, which was filed today, alleges that UBS Securities, IMC Financial Markets, and Clear Street Markets engaged in spoofing—a deceptive practice where false orders are placed to move stock prices—between November 9, 2021, and November 9, 2023.
The company's lead attorney, Wes Christian from Christian Attar suggested the damages could amount to billions of dollars. Mullen Automotive is seeking compensation for breaches of federal securities laws and an injunction to prevent future manipulative activities by these firms. They have also requested a jury trial to adjudicate their claims.
In a detailed account of the alleged manipulation, the legal filing specifies average price drops associated with spoof orders: UBS allegedly caused a drop of about 1.76%, IMC by around 1.53%, and Clear Street by approximately 0.91%. This lawsuit follows a series of strategic moves by Mullen Automotive, including the acquisition of intellectual property and a facility in Mishawaka, Indiana from Electric Last Mile Solutions.
Earlier this year in September, Mullen made a strategic investment in Bollinger Motors, taking a majority stake in the company. Additionally, on August 29, 2023, Mullen decided to drop an original short-selling lawsuit after reviewing its cost-benefit implications.
Amid these developments, CEO David Michery has emphasized the company's dedication to transparency and protecting shareholder interests by pursuing legal actions against spoofing activities.
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