In a Landmark Decision, Mullen Defeats Defendants’ Motion to Dismiss in Its Entirety, Allowing the Federal Spoofing Lawsuit to Combat Artificially Deflated Stock Prices to Proceed

In a significant victory for Mullen and other emerging companies who have alleged losses due to stock manipulation, a federal judge denied IMC, Clear Street, and UBS’s motion to dismiss the lawsuit, finding Mullen’s claims were adequately pled.  The litigation will now move forward into full discovery

In the Federal Court’s decision, received after the close of trading on March 28, 2025, Mullen won on all contested issues

BREA, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- via IBN -- (NASDAQ: ) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, successfully overcame a motion to dismiss brought by defendants IMC Financial Markets, Clear Street Markets LLC,  UBS Securities, LLC and Does 1-10 (“Defendants”).

In the lawsuit, which is pending in the United States District Court for the Southern District of New York, Mullen alleges that between November 5, 2021 and November 15, 2023, Defendants used high-frequency algorithmic trading to manipulate and spoof Mullen shares in violation of Section 10(b), Rule 10b-5(a) and (c), and Section 9(a) of the Securities Exchange Act of 1934, and New York common law fraud. 

FINRA has characterized spoofing as an insidious form of market manipulation that undermines the transparency and integrity of the markets by distorting the true nature of supply and demand. Spoofing involves the submission and cancellation of non-bona fide buy and sell orders that have no legitimate economic purpose and are not intended to be executed. With “Baiting Orders,” for example, Defendants allegedly placed sell orders meant to create a false signal that Mullen’s share price was trending downward, tricking other market participants into entering their own orders to sell. The spoofers then executed buy orders—now at artificially low prices—and promptly canceled their Baiting Orders.

In rejecting Defendants’ motion to dismiss, the Court held, among other things, that Mullen had “identif[ied] a number of actions that differentiate the Defendants from typical market participants. Defendants placed far more orders for sell-side shares that were subsequently canceled and then purchased far more shares at depressed prices following spoofing episodes[.]” In particular, “Defendants placed and then cancelled a high volume of Baiting Orders within seconds and even milliseconds, repeating this pattern thousands of times, often with multiple episodes per trading day.” In turn, the Court determined that Mullen’s complaint “outlines Defendants’ efforts to artificially depress the price of Mullen securities and the subsequent effects on the market.”

“We are pleased with the Court’s decision and look forward to continuing our fight to protect our company and our shareholders,” said David Michery, CEO and chairman of Mullen Automotive.

Stephen W. Tountas, the lead lawyer for plaintiffs, added that “we look forward to commencing discovery to expose Defendants’ pervasive and manipulative trading practices, which have significantly harmed both Mullen and its shareholders.” 

The case is captioned, Mullen Automotive, Inc. et al v. Clear Street Markets LLC et al, No. 1:23-cv-10637 (S.D.N.Y.).

About Kasowitz Benson Torres LLP

Kasowitz is a leading national litigation law firm. The firm focuses on complex commercial, corporate and securities litigation, and represents clients on a wide range of matters, from class action litigations to privately negotiated resolutions of complicated disputes. 

This Mullen team is being led by Kasowitz partners and . 

About Mullen

Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. The Company’s commercial dealer network consists of seven dealers, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic markets.

In September 2022, Bollinger Motors, of Oak Park, Michigan, became a majority-owned EV truck company of Mullen Automotive. Bollinger Motors has passed numerous milestones including its B4, Class 4 electric truck production launch on Sept. 16, 2024, and the development of a world-class dealer and service network with over 50 locations across the United States.  

To learn more about the Company, visit .

Forward-Looking Statements

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to the eventual outcome of the referenced lawsuit. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

Contact:

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