Citron Research Founder Andrew Left Convicted of Securities Fraud
LOS ANGELES – A federal jury in Los Angeles convicted Andrew Left, the founder of Citron Research, on multiple counts of securities fraud on July 7, 2025, following a three-week trial. The verdict relates to an alleged scheme in which Left used social media posts to manipulate stock prices for personal profit.
Verdict
Left was found guilty on one count of engaging in a securities fraud scheme and 12 counts of securities fraud related to specific trades. He was acquitted on four counts. The jury deliberated for two days before reaching the verdict.
Charges and Allegations
Prosecutors alleged that from 2018 to 2023, Left used posts on the social media platform X (formerly Twitter) to issue false or misleading statements about companies. According to the indictment:
Left would open trading positions in stocks before publishing commentary, then quickly close those positions after the commentary caused price movements.
The government alleged he earned at least $20 million from this practice.
In one example cited by prosecutors, Left shorted Roku shares in January 2019, posted that the company was "uninvestible," and later stated he was "watching from the side" while profiting $700,000 from the trade. Companies targeted in the alleged scheme included Tesla, GameStop, Nvidia, Grand Canyon Education, and Peloton.
Defense
Left testified in his own defense, arguing that his statements were truthful opinions and that no law requires a holding period after publishing commentary. He stated that he believed his trading was legal. His legal team has indicated plans to appeal the conviction. After the verdict, Left posted on his Citron Research X account that he disagrees with the outcome.
Sentencing
A sentencing hearing is scheduled for August 31, 2025. Left faces a maximum penalty of 25 years in prison, though actual sentences are often shorter. He remains free until the sentencing date.
Industry Impact
The case has been closely monitored by the short-selling industry and its critics. An FBI official stated:
"The conviction will send a message to those who may be looking to profit from similar schemes."
Background
Left gained prominence for prescient calls on companies including China Evergrande (2012) and Valeant Pharmaceuticals (2015). He operated under the name Citron Research, publishing investment recommendations that targeted stocks popular with retail investors. He was initially charged in July 2024 and pleaded not guilty.