Citron Capital Founder Andrew Left Faces SEC Lawsuit

(Reuters) – Andrew Left, founder of Citron Capital and noted short seller, has requested a judge to dismiss the lawsuit initiated by the U.S. Securities and Exchange Commission (SEC). This lawsuit accuses him of misleading investors through social media, resulting in millions of dollars in profit.

Legal Arguments

Left’s attorney, James Spertus, argues in a court filing that the SEC’s case “fails to state a claim” because it does not provide a viable theory of fraud or sufficient facts to support the allegations.

Background of the Case

In July, the SEC along with the U.S. Justice Department charged Left with market manipulation and defrauding investors by making deceptive claims regarding his stock positions, particularly in Nvidia (NASDAQ: NVDA) and Tesla (NASDAQ: TSLA).

Authorities allege that he utilized his social media influence and appearances on cable news to boast about his long and short trades, only to reverse those positions quickly, ultimately making up to $20 million.

Upcoming Trial

A federal judge in Los Angeles has scheduled Left’s trial for September 30, 2025. Initially, he was set to go to trial this September.

Left has pleaded not guilty and has been a leading figure amongst so-called “short activists,” who bet against public companies, claiming they are over-valued or involved in fraud.

Neither Left’s attorney Spertus nor the U.S. SEC provided immediate comments to Reuters.