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MULN Stock: New Petition Calls for Mullen to Fight Short Sellers Like Genius Group

  • Genius Group (GNS) has formed an “Illegal Trading Task Force” and now Mullen Automotive (MULN) shareholders are asking for the same.
  • Shareholders have created a petition with more than 2,300 signatures.
  • MULN stock is down more than 15% year-to-date (YTD).
The Mullen Five vehicle is displayed at the 2021 LA Auto Show media day in Los Angeles, November, 18, 2021. MULN stock.
Source: Ringo Chiu / Shutterstock

The concept of failure to deliver (FTD) is a highly controversial topic in the financial industry. FTD happens when one party in a contract fails to deliver on their obligation, whether it be shares, options or futures. In the example of shorting a stock, it can occur when the short seller does not own all or any of the shares at the time of settlement, therefore defaulting on the obligation. This could result in the creation of “phantom shares,” which may lower the price of the stock.

Yesterday, Genius Group (NYSEMKT:GNS) announced that it had formed an “Illegal Trading Task Force” to investigate market manipulation and naked short selling. The team will be led by former FBI Deputy Director Timothy Murphy, who is also a Director of Genius. Following the news, shares of GNS stock skyrocketed higher by over 250%. In the past five trading days, GNS stock has returned about 500%.

Today, Helbiz (NASDAQ:HLBZ) announced a similar measure, stating that it would create a “comprehensive action plan” to investigate illegal short selling practices.

Now, Mullen Automotive (NASDAQ:MULN) shareholders have banded together to create a petition against market manipulation and illegal short selling. At the time of writing, the petition had over 2,300 signatures.

MULN Stock Holders Petition to Investigate Naked Short Selling

The new petition asks Mullen and CEO David Michery to create a task force against market manipulation, similar to how Genius did. In the comments of the petition, shareholders are adamant that something sinister is going on. In particular, they reference dark pool trading and the ignorance of the U.S. Securities and Exchange Commission (SEC).

According to Fintel, a total of 35.8 million shares of MULN stock failed to be delivered in December. The volume of shares that were unable to be delivered rose substantially during the end of the month.

Retail investors are unable to enact a FTD scenario, although market makers and broker dealers can. In addition, not all FTD scenarios are conducted with ill intent. The SEC notes that “human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the standard settlement period.”

Still, the shareholders have spoken, asking Mullen to investigate the FTD behind MULN stock. The company has not yet responded to the petition.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2023/01/muln-stock-new-petition-calls-for-mullen-to-fight-short-sellers-like-genius-group/.

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