Andrew Left, author, editor, and founder of Citron Research, announced he would end his business’ practice of publishing short-seller reports.
After decades in business, Citron became an institution on Wall Street. In 2015, it uncovered “phantom sales” at Valeant Pharmaceuticals and concluded, “the whole thing is a fraud.” Citron’s reporting brought on an SEC investigation and the stock price cratered 90%.
In 2020, Citron helped expose alleged lies and fraud behind electric truck maker Nikola Corporation (NASDAQ: NKLA). NKLA stock peaked at $94 per share but has since fallen as low as $13.50.
The GameStop Corp. (NYSE: GME) was Citron’s latest target. In early January, as the stock price rose above $40 per share, Citron initiated a short position and called for the price to fall back below $20.
But the Reddit group WallStreetBets saw the massive short interest in the stock and orchestrated a short squeeze. GME stock soared to more than $500 in the next two weeks.
Citron’s Left claims to have covered all but a small portion of the firm’s short position in the $90s for a “100% loss.”
This morning, Left posted a new video announcing that after 20 years of exposing fraud and “protecting the individual,” he would end the practice of writing short-seller reports.
In the video, he states that his firm was started “to be against the establishment” but has since “actually become the establishment.”
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