Phunware, a Texas-based software company, filed a lawsuit against UBS Securities on Tuesday, alleging that between January 2021 and March 2023, UBS Securities interfered with the natural forces of supply and demand to depress its stock price by means of a fronting scheme.
UBS is accused of giving "bait orders" that were never intended to be executed.
The lawsuit alleges that UBS placed “baiting orders” that it did not intend to execute, and that the orders did not have a rational economic purpose other than to create “illusions of market intent.” Phunware stated that UBS Securities would have canceled the sell orders and executed the buy orders if the stock price had fallen.
The lawsuit also alleges that more than 34 million shares were sold at manipulated prices because of the defendants' behavior, resulting in significant losses to Phenware. UBS did not immediately respond to a request for comment.
