Shares of Mullen Automotive Inc. bounced Wednesday, after the electric-vehicle maker said it retained a law firm to help it combat illegal naked short-selling activities.
The stock
MULN,
bounced 2.9% in morning trading, after falling 6.3% on Monday to close at a record low of 10.1 cents. It suffered a record 85.2% monthly plunge in June, even after the company reported last week that it recorded revenue for the first time and that it was in the “best financial position” in its history.
On Wednesday, the Brea, Calif.-based company said it retained Christian Attar, formally known as Christian Levine Law Group, in partnership with Warshaw, Burstein LLP, to combat naked short selling, which is an illegal way of taking bearish bets against a stock.
Based on reports received from share-tracking company Shareholder Intelligence Services LLC, or ShareIntel, Mullen believes its stock may have been the target of a market-manipulation scheme — naked short selling — and has taken action to expose any potential wrongdoing.
The company noted that Christian Attar has prosecuted and collected “millions of dollars” in total damages on behalf of clients from those who have engaged in market manipulation schemes.
“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,” said Chief Executive Officer David Michery.
The stock has plummeted 95.9% over the past three months, while the Global X Autonomous and Electric Vehicles exchange-traded fund
DRIV,
has rallied 15.2% and the S&P 500
SPX,
has advanced 8.7%.
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