- A jury was chosen Monday in the trial of Andrew Left, the short-seller behind Citron Research.
- Prosecutors allege Left used his platform to manipulate the market.
- Left argues he never misled anyone and said he's ready to fight the securities fraud charges.
Prominent short-seller Andrew Left kicked off the first day of his criminal trial with a bit of Courage.
Waiting outside a federal courtroom in Los Angeles, Left told Business Insider that he had stopped for breakfast at Courage Bagels, a trendy spot where the line often stretches down the block.
Asked how he was feeling, Left did some air punches and said he was ready, noting how long it's been since he was charged.
The investor, a frequent commentator on financial news channels, was indicted in 2024 on charges he used his influence to manipulate markets and deceive everyday stock buyers with false or misleading statements. Prosecutors allege Left, who founded Citron Research and is known for his bets on GameStop, made $16 million in profits by taking positions on stocks contrary to his public statements.
Monday opened with jury selection, and the judge peppered over 50 potential jurors with questions about their investing experience after "mini opening statements" from both sides.
Federal prosecutors told potential jurors it was a case involving "Twitter, tweets, and trading." They said Left used his website, TV appearances, and 100,000-strong Twitter following to manipulate markets, arguing he could send a stock price down with a single post. "Tweets were essential to defendant's scheme," Assistant US Attorney Andrew Roach said.
Adam Fee, a lawyer for Left, said the defense would prove that Left "only shared his honestly held opinions about the stock market." He said the case is not about whether Left was right or wrong, but about whether he believed what he said when he said it.
Right off the bat, several jurors expressed concerns about potential bias or shared negative views about the stock market.
One potential juror said he already had an opinion about the case after the openings, adding, "I'm not a fan of pundits." Another said she had family who lost money in the stock market after listening to the opinions of others online. One potential juror who said he previously worked as a floor trader at the Chicago Board of Trade was dismissed.
Andrew Left with his legal team after a court appearance last year.
Bloomberg/Getty Images
Most members of the jury pool said they were not active investors beyond standard retirement accounts, though a dozen or so said they owned individual stocks or used Robinhood, a popular retail trading platform. The courtroom burst into laughter when one man said he was earning big on some trades, including an investment he made in an AI company that he said was "ripping along right now."
Several said they owned stocks that were directly relevant to this case, including Tesla, Nvidia, Palantir, and GE.
For jurors who owned individual stocks, U.S. District Judge Virginia Phillips was interested in how they make decisions on stocks, and asked jurors to confirm that their ownership of stocks related to the case would not impact how they weigh the evidence. Owning those stocks was not enough on its own to have the jurors dismissed.
Prior to the trial, Left told Business Insider he was "nervous" and that he hadn't decided if he was going to testify. His name was included on the witness list that was read aloud in court on Monday, though that does not guarantee he will take the stand.
The case is being closely watched by other short-sellers and legal experts, who say it's not a slam dunk for the government or for Left. The defense has argued in motions that the opinions he shared were protected by freedom of speech, but independent attorneys told Business Insider that wouldn't protect fraudulent statements.
Left — who, like many activist short-sellers, has exposed potential fraud at companies he's taken short positions on — faces up to 25 years in prison if convicted of the top charges. Opening statements begin Tuesday, and the trial is expected to last two to three weeks.
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