Hedge Funds Citron, Anson Sued Over Report on Biotech Company

Two hedge funds allegedly schemed to manipulate the stock prices of dozens of companies including biotechnology developer PolarityTE, according to a lawsuit brought by a PolarityTE investor.

Short-seller Andrew Left’s Citron Capital LLC and another firm, Anson Funds Management LP, disparaged PolarityTE and engaged in additional wrongdoing by making false claims about its patent application and other issues, Barry Honig said. The Florida investor sued along with his company, as a 401(k) plan administrator, and his family trust—together, a group that allegedly owned almost 10% of PolarityTE—on April 10 in the US District Court for the Northern District of ...