Andrew Left, founder of Citron Research, appears in federal court in Los Angeles, California, on Monday, July 7, 2025. Activist short seller Andrew Left is scheduled to appear in federal court on Monday in a securities fraud case that rocked the industry a year ago, with a fight over tipping investors and free speech.
Eric Thayer | Bloomberg | Getty Images
The Justice Department announced Monday that a U.S. jury has convicted prominent investor Andrew Left of securities fraud, dealing a blow to a divisive group of short sellers who have for years stoked allegations of fraud and mismanagement in publicly traded companies in the U.S. and abroad.
U.S. authorities indicted Mr. Left in July 2024, accusing him of manipulating the stock market and defrauding investors with misleading claims about stock positions in multiple companies, including: Nvidia and teslamaking at least $20 million in the process.
Left, who runs Citron Research, denied the charges and maintained his innocence.
But after two days of deliberation, the jury found him guilty of participating in a securities fraud scheme and 12 of 16 other charges related to specific transactions. A Justice Department spokesperson added that he was acquitted of the other four charges and that Zuo will be sentenced on August 31.
Mr. Left’s attorney did not immediately respond to a call seeking comment or a subsequent text message asking whether Mr. Left would appeal.
“No one ever said I lied…there were no false statements,” Left wrote in a post on his Citron Research X account on Monday. “While we disagree with the jury’s opinion, this does not stop here. We will continue to fight for the foundations of this country: free and honest speech and opportunity. This is not over.”
During the 15-day trial, U.S. prosecutors accused Mr. Left of being an opportunist who profited by scaring retail investors, but the defense said Mr. Left wholeheartedly believed in his stock calls. In an unusual and risky move, Left took to the stage to explain his investment decisions.
Aggressive legal theory?
For more than a decade, the leftists, known for their sensational and eclectic style, have been among the most prominent groups of short-circuit activists who argue that public companies are overvalued or bet on outright fraud, drawing the ire of companies that have fought to rein in the bets.
Short sellers are betting on the stock price to fall in hopes of profiting from it, while leftists have also taken long positions.
Prosecutors argued that Left, 55, used his influence on social media and cable news appearances to promote his trades, only to quickly and secretly close out his positions in order to profit from short-term price movements.
Prosecutors said that for Left’s scheme to work, retail investors had to believe he was putting his money where his mouth was, and they called multiple witnesses, including retail investors who said they were victimized by Left’s calls.
Left faces a statutory sentence of up to 25 years in federal prison on one count of securities fraud scheme, and a maximum sentence of 20 years in federal prison on one count of securities fraud. Some legal experts argued the Justice Department’s lawsuit was aggressive. Although long criticized, short sellers often relied on First Amendment rights to protect themselves. Investors are also free to change their minds.
But prosecutors focused on Left’s personal messages and other evidence of backroom dealings to show that his true intentions were manipulation.
He also claimed that in exchange for compensation, he warned hedge funds before disclosing his positions and used fake invoices to hide adjustments.
