Meme Stock Influencers Grilled by Panel in Pump-and-Dump Appeal

Prosecutors trying to revive charges against seven social media influencers accused of orchestrating a $114 million pump-and-dump securities fraud scheme argued their case before a receptive Fifth Circuit on Wednesday.

At least one member of the three-judge panel shared the government’s concern that affirming the district court’s ruling dismissing criminal charges here could upend market manipulation cases across the country.

“If we agree with you, doesn’t that have far reaching impacts for any market manipulation scheme by a non-insider under 1348,” Judge Kurt D. Engelhardt asked counsel for the defense.

“No,” Samuel Rosen of Dynamis LLP, replied. “They could ...