On Wednesday, June 3, 2015, Jonathan Stempel of Reuters reported in an article entitled, UPDATE 1-U.S. charges four with insider trading in stock offerings, that Synergy Pharmaceuticals (NASDAQ:SGYP) had been one of at least 14 public companies whose stock had been manipulated by short selling public offerings between 2010 and 2013. Keeping in mind that all defendants are innocent until proven guilty, U.S. attorney Paul Fishman alleges that Steven Fishoff, president of Featherwood Capital Inc whose website motto is: "We Know The Secrets Of The Ultimate Success" and 3 co-conspirators, including a disbarred lawyer, were responsible for taking $3.2M of illegal profits from retail shareholders.
The 8.5B shares issued to the Hedge funds have been making money on their non restricted shares. They have been selling their shares from the get go and they know their selling pushes the stock price down so they short it as well... making $$ on both ends..
It's just a pink listing that get's passed around the block with a another scam plan
The share offering or dilution is old news, it moved up substantially after that, but it's now giving it all back. The market see's the meltdown so why buy until it stops.
Short Interest has declined significantly since April 15th where it peaked
May 30th 2,285,144
May 15th 2,156,442
April 30th 2,365,142
April 15th 2,746,286
As of May 29th, the short interest was 2,285,144 shares, a growth of 6.0% from the May 15th total of 2,156,442 shares
I'm sure on June 4th when the stock hit $1.05 on 5M traded a lot of shorts ran for cover. I will bet the next 15 day short period will be lower
This lawyer was disciplined by a state licensing authority.
Reprimand issued in CT, 2015
updated on Apr 19
This means the attorney did something wrong, but the State did not suspend the lawyer. Typically in this case the lawyer's poor behavior is exposed to the public in hopes that he or she will not repeat the behavior.