Defense Seeks Mistrial in Short-Seller Securities Fraud Case

Defense lawyers for convicted short seller Andrew Left asked a federal court Friday for a mistrial, citing an error in the verdict form that listed a charge previously dismissed by the court. The form included a count accusing Left of lying to a federal investigator.

The jury convicted him on that count even though the charge had been removed weeks earlier, and the incorrect documents appeared on the public docket. Left's legal team argued the mistake tainted the entire verdict and requested a new trial. A decision on the request is expected within the coming weeks.

Background of the Case Left, 55, founded Citron Research and built a public profile by publishing negative commentary on stocks he was shorting. Prosecutors said he ran a short-and-distort scheme that generated more than $21 million between 2018 and 2023.

The jury convicted Left on one count of securities fraud and 12 counts tied to specific trades, including trades in Nvidia, Tesla, and Meta. He was acquitted on four other counts. Prosecutors told jurors Left "tweeted with one hand and traded with the other" and described retail investors who lost money after following his public statements.

Next Steps Sentencing remains scheduled for Aug. 31. Left is free until then.

The lead securities-fraud count carries a maximum 25-year prison term. If the mistrial request is granted, prosecutors would restart the case with a new jury. If denied, Left's lawyers said they will raise the verdict-form issue on appeal.