Upexi challenges stock manipulation scheme in court
- Upexi completed a 12-for-1 reverse stock split in early October, which significantly increased shareholder activity.
- Following the split, brokerage firms requested a large proportion of the total outstanding shares, raising concerns about possible manipulation.
- The company has filed a complaint in court to investigate these trading practices and seek accountability.
In early October, Upexi, a company traded on NASDAQ, completed a 12-for-1 reverse stock split. Prior to this action, the company had fewer than 5,000 shareholders. Following the reverse stock split, an alarming situation arose when five brokerage firms collectively requested 199,059 of the 202,183 total roundup shares, making up about 19% of Upexi's outstanding stock. This was a significant increase, representing around 40 times the number of shareholders that existed before the split. Upexi's management strongly suspects that there has been manipulation in trade practices during this period, prompting them to file a complaint in the U.S. District Court for Nevada. The company's CEO, Allan Marshall, expressed his astonishment at the extent of evidence in support of their claims and highlighted the need for accountability in the trading activities surrounding reverse stock splits.