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NWBO Stock Alert: Northwest Bio Slams Citadel Securities in New Lawsuit


NWBO stock - NWBO Stock Alert: Northwest Bio Slams Citadel Securities in New Lawsuit

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Shares of Northwest Biotherapeutics (OTCMKTS:NWBO) are in focus on Thursday. NWBO stock is up about 5% on the day and it’s got investors’ attention with a lawsuit against Citadel Securities, among other firms.

Here’s the skinny. The company is accusing Citadel Securities, Susquehanna and “other Wall Street firms of driving down its stock price through a series of illicit trading tactics.” It also includes Canaccord Genuity, G1 Execution Services, GTS Securities, Instinet, Lime Trading and Virtu Americas.

According to the Wall Street Journal:

“In a lawsuit filed Thursday in Manhattan federal court, Northwest Biotherapeutics Inc. NWBO alleged the market makers had repeatedly engaged in ‘spoofing,’ where traders place orders with an intent to fool other investors about a stock’s demand and manipulate the price.”

Citadel responded by calling it a “frivolous lawsuit” in an effort to “divert attention away” from its own company-specific issues.

What Does This Mean for NWBO Stock?

As for volatility, there’s been plenty of it for NWBO stock. From Nov. 9 to Nov. 18, shares rallied more than 80%. The stock then fell more than 35% from those highs over the next few sessions.

In April, the stock had a one-week rally of 80%, then suffered a peak-to-trough fall of 81% a week later. Before that, shares rose more than 650% in just a few months in the second half of 2020, shortly before all of the meme stock rallies began taking off.

Now one could argue that for a small-cap biotech stock with a market capitalization of $900 million, this price action isn’t all that wild. That said, if the case from Northwest Biotherapeutics were to pan out, one might imagine more lawsuit from companies of other stocks. Specifically, that means companies like GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), Bed Bath & Beyond (NASDAQ:BBBY) and others that experienced massive volatility.

NWBO stock is down 11% so far in 2022 and is up more than 7% over the last 12-months. That said, it’s down 55% from its one-year high.

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On the date of publication, Bret Kenwell 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.



Read More: NWBO Stock Alert: Northwest Bio Slams Citadel Securities in New Lawsuit

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