Small-cap companies are going after naked short sellers in growing numbers: ‘It’s the biggest risk to the health of today’s public markets’
A growing number of small-cap companies are announcing plans to go after naked short sellers, claiming their stocks are being artificially depressed by illegal trading activity. Verb Technology Co. Inc. (VERB) , a provider of interactive video-based sales apps with operations in Newport, California and Lehi, Utah, said Monday it was joining education company Genius Group Ltd. (GNS) e-scooter and e-bike maker Helbiz (HLBZ) and Creatd Inc. (CRTD) which aims to unlock creativity for creators, brands and consumers, in coming up with measures to ensure “greater integrity in the capital markets,” as Chief Executive Rory J. Cutai said in a statement. Genius Group got the ball rolling last week when it said it had appointed a former F.B.I. director to lead a task force investigating alleged illegal trading in its stock that it first disclosed in early January.