Mullen Automotive Advances Spoofing Suit Against Broker-Dealers

Mullen Automotive Inc. and two of its investors can proceed with market manipulation claims against three broker-dealers for actions that allegedly drove down the electric vehicle maker’s stock price, a federal court ruled.

IMC Financial Markets, Clear Street Markets LLC and an affiliate, and UBS Securities LLC are the firms that must continue to face the claims under the March 28 ruling of the US District Court for the Southern District of New York. Mullen and the investors adequately alleged federal securities fraud claims and New York state common law fraud claims, Judge Louis L. Stanton said.

• The defendants, ...