SEC investigates GameStop stock surge, finds no evidence of fraud

Originally published on GamesIndustry.biz by Danielle Partis

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The Securities and Exchange Commission has concluded an investigation into the Gamestop stock price surge that took place earlier this year, and found no evidence of fraudulent behaviour to manipulate the market.

In the 45 page report, the SEC concluded that while “short sellers covering their positions likely contributed to increases in GME’s price” during the surges, “a short squeeze did not appear to be the main driver of events.”

It said that despite the volatility surrounding the trading, “it was the positive sentiment, not the buying-to-cover, that sustained the weeks-long price appreciation of GameStop stock.”

The

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