Shares of Mullen Automotive, Inc. (NASDAQ: MULN) experienced a staggering 69.38% surge on Wednesday. The remarkable rise in share value comes in the wake of the company’s bold decision to combat alleged illegal naked short-selling activities.
Mullen revealed that it had received reports hinting at a possible “market manipulation scheme” involving illegal naked short selling, which prompted the company to take immediate action. In response to these concerning reports, Mullen has enlisted the services of Christian Attar, in collaboration with Warshaw, Burstein, LLP, to conduct a thorough investigation and uncover any potential wrongdoing.
Christian Attar has an impressive track record, having recovered millions of dollars in damages for previous clients fighting against market manipulation schemes. Now, it is tasked with investigating the alleged illicit activities and exposing those involved.
David Michery, the CEO and chairman of Mullen, expressed their proactive stance on the matter. He stated, “Since our announcement on April 28, we have been actively investigating naked short selling and we now have enough intel to have the law firm actively investigate and, where justified, take action against any market manipulators using naked short selling, spoofing or other illegal acts.”
Earlier, Mullen had taken proactive measures to address concerns surrounding abnormally high trading volume and evidence of unusually high levels of failed short sales. These actions were implemented to address potential issues and protect the company’s interests.