Upexi, Inc. UPXI shares are trading lower. The company filed a complaint in the U.S. District Court for Nevada to investigate those behind the manipulative fractional share round-up scheme during its reverse stock split.
The Details: Upexi believes that through the discovery process the company will be able to decipher who engaged in the manipulative trading transactions.
The company completed a 12-for-1 reverse stock split in early October. Before the split, it had fewer than 5,000 shareholders. Following the split, five brokerage firms requested 199,059 of the 202,183 total roundup shares, which account for about 19% of Upexi’s outstanding stock.
This represents approximately 40 times the number of shareholders the company had before the reverse stock split.
“The company has taken the first and precedent-setting action in exposing the blatant manipulation around reverse stock splits. Since our previous release regarding this issue, I have been contacted by a number of companies who also were victims of this damaging stock manipulation scheme. I am astonished by the extent of the evidentiary support and encouragement I have received from multiple sources to advance our claims against those whom we believe manipulated the shares of Upexi and other securities,” said Allan Marshall, CEO of Upexi.
UPXI Price Action: At the time of writing, Upexi shares are trading 11.9% lower at $4.97, according to data from Benzinga Pro.
Image: Photo via Shutterstock
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