Mullen Automotive, a burgeoning player in the electric vehicle manufacturing sector, offered a comprehensive status report yesterday on the ongoing lawsuit it initiated against TD Ameritrade, Charles Schwab, National Finance Services, and other entities. The lawsuit contends that these broker-dealers were involved in a scheme aimed at manipulating the share price of Mullen Automotive Inc’s securities. Filed in August 2023, the case is currently under the jurisdiction of the United States District Court in the Southern District of New York. Mullen is seeking compensatory damages and injunctive relief, citing the defendants’ alleged “unlawful conduct in violation of Section 10b and Rule 10b-5 promulgated thereunder of the Securities Exchange Act of 1934.”
Earlier this week, Judge Analisa Torres issued an order instructing Mullen to submit an amended complaint no later than November 30, 2023. Additionally, both parties are mandated to jointly present a case-management plan by December 15, 2023.
Following the update, Mullen Automotive experienced a notable surge in its stock shares.
At the time of this publication, Mullen Automotive Inc stock (MULN) has witnessed a surge.
Mullen Automotive Inc
Current Price: $0.29
Change : +0.07
Change (%): (29.98%)
Source: Tomorrow Events Market Data
The outlined plan stipulates specific deadlines, including the date by which the defendants intend to file any motions to dismiss, as well as other critical dates to be determined and/or directed by the court. Mullen is vigorously pursuing all available avenues to safeguard the interests of the company and its shareholders. Representatives from the firms representing Mullen, Christian Attar and Warshaw Burstein, expressed confidence that the defendants’ alleged misconduct will be brought to light, holding them accountable for any wrongfully obtained funds from Mullen and its shareholders.
Warshaw Burstein partner, Alan M. Pollack, highlighted the distinctive legal nuances this case raises regarding how broker-dealers potentially manipulate the market and the subsequent ramifications on retail investors. In a press release, Pollack stated, “Counsel will diligently work to expose defendants’ wrongdoing in order to protect the rights of Mullen and its shareholders.”
This lawsuit underscores the gravity of allegations against the accused broker-dealers and places a spotlight on the evolving landscape of securities regulation and investor protection within the dynamic electric vehicle industry.