EV Maker Mullen Sues Three Broker-Dealers for Alleged Spoofing

Mullen Automotive Inc. sued three broker-dealers for allegedly engaging in spoofing and market manipulating that drove down the electric vehicle maker’s stock price, according to a lawsuit filed by the company.

IMC Financial Markets, Clear Street Markets LLC, and UBS Securities LLC allegedly failed to design a system of risk management and supervision to prevent market manipulation on their platforms, creating the false illusion of excess supply or demand with “baiting orders,” according to the complaint filed Wednesday in US District Court for the Southern District of New York.

Each instance of spoofing over the two-year period starting ...