Meme Stock Influencers Lose Bid to Dismiss Pump-And-Dump Charges

Seven social media influencers accused of orchestrating a $114 million pump-dump-scheme lost their bids to dismiss securities fraud charges, after a federal court in Houston said their allegedly fraudulent statements weren’t protected speech.

“The First Amendment has never been a shield to fraud,” the US District Court for the Southern District of Texas said.

The defendants argued that predictions and opinions aren’t actionable. But a prediction or opinion made in bad faith in furtherance of a conspiracy can be, Judge Andrew S. Hanen said.

Taking the government’s allegations as true, the defendants’ statements—made on what was then Twitter, now X, ...