Spectral AI Inc (NASDAQ:MDAI) has updated stakeholders on its efforts to address potential market manipulation involving its common stock, primarily through naked short selling.
The AI-driven medical diagnostics company told shareholders that it is continuing to support an ongoing naked short selling inquiry led by Erich Spangenberg, a board member and the company’s largest shareholder.
Spectral AI has collaborated with Nasdaq and state securities authorities in Florida, Louisiana, and Texas.
Initial communications were made through letters dated June 24, 2024, aiming to bring attention to possible breaches of Nasdaq regulations and federal and state laws.
In a follow-up letter to Nasdaq on July 15, 2024, Spangenberg reiterated the need for thorough investigations into alleged naked short selling practices.
The company expressed concerns over the detrimental effects on MDAI shares and similar companies that have undergone de-SPAC transactions.