According to ChainCatcher, the U.S. Securities and Exchange Commission issued an announcement accusing Meta Materials and its former CEO of market manipulation, fraud and other illegal activities.
The U.S. Securities and Exchange Commission today filed charges against Meta Materials and its former CEOs, John Brda and George Palikaras. The company has agreed to settle the SEC’s charges in an administrative proceeding, while the SEC’s litigation against Brda and Palikaras will proceed in federal district court.
The SEC alleges in a complaint filed in the U.S. District Court for the Southern District of New York that Brda and Palikaras planned and implemented a manipulative scheme that included issuing a preferred stock bonus immediately prior to the merger. The complaint alleges that Brda and Palikaras told certain investors and advisors, and suggested through social media, that the bonus would force short sellers to exit their positions and trigger a “short squeeze,” thereby artificially increasing the price of the company’s common stock.
