Verb Technology (NASDAQ:VERB) stock is rocketing higher on Monday as the company plans to tackle alleged illegal short-selling of its shares.
According to a press release from the company, the Verb Technology Board of Directors is investigating measures it can take against potential illegal short-sellers. It claims these traders may have used naked short selling and spoofing to reduce the price of VERB stock.
Verb Technology is considering its options when it comes to an investigation into short sellers. The company is weighing bringing in forensic experts to handle the matter, as well as seeking aid from other public companies dealing with similar problems.
Rory J. Cutaia, chairman and CEO of Verb Technology, said the following in the news release:
“The pattern of suspicious trading activity in our stock as a potential cause of the continued depression of our share price has had broad implications for our business and our shareholders, impacting our cost of capital, restricting our growth, and jeopardizing compliance with Nasdaq’s listing requirements.”
What This Means for VERB Stock
Investors are rallying around VERB stock today as they’ve done with others planning to take on short-sellers. As a result, some 47 million shares of the company’s stock have changed hands as of this writing. That’s a major increase compared to its daily average trading volume of 2.2 million shares.
VERB stock is up 101.1% as of Monday morning.
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On the date of publication, William White did not have (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.