On Oct. 16, Northwest Biotherapeutics (NWBO) shares plunged 30% for no apparent reason. It wasn’t a particularly volatile trading session for biotech stocks and the company issued no news releases that day, or even the day before, which would have easily explained the stock’s big decline.
Northwest Bio, however, was quick to blame short sellers for the sudden collapse in its stock price. In an email sent to shareholders a few days later, Northwest Bio said the “unusual activity” on Oct. 16 reflected an “orchestrated campaign to drive the stock price lower, including questionable short-selling activity.” The company offered no evidence to support its accusation, but pledged to intensify its investigation of the short-selling.
