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Hedge fund accuses US regulators of bias in short-selling case

It is unusual for the SEC to go after money managers who publicly discuss why they are short a stock, say lawyers

The U.S. Securities and Exchange Commission building in Washington, DC
The U.S. Securities and Exchange Commission building in Washington, DC Photo: Getty Images

For years, Ligand Pharmaceuticals urged the Securities and Exchange Commission to pursue one of the drug company’s critics. It got nowhere.

In late 2018, it finally got its wish: The SEC filed civil fraud charges against Gregory Lemelson, an ordained Greek Orthodox priest who also runs a tiny hedge fund in Massachusetts. The agency alleges that he falsely disparaged Ligand to profit from his short position in the stock.

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