The SEC charges Meta Materials Inc. and its former CEO with market manipulation, fraud, and other illegal activities

ChainCatcher News, the U.S. Securities and Exchange Commission announced that it has charged Meta Materials Inc. and its former CEO with market manipulation, fraud, and other illegal activities.

The U.S. Securities and Exchange Commission today filed charges against Meta Materials Inc. and its former CEOs John Brda and George Palikaras. The company has agreed to resolve the SEC's charges in an administrative proceeding, while the SEC's lawsuit against Brda and Palikaras will proceed in federal district court.

In a complaint filed in the Southern District of New York federal district court, the SEC alleges that Brda and Palikaras orchestrated and executed a manipulation scheme, which included the immediate issuance of preferred stock dividends prior to a merger. The complaint alleges that Brda and Palikaras informed certain investors and advisors and hinted through social media that the dividend would force short sellers to exit their positions and trigger a "short squeeze," artificially inflating the price of the company's common stock.