Business
Well-known stock trader and his L.A. firm are charged with fraud and market manipulation

Federal prosecutors and securities regulators in Los Angeles announced charges Friday against prominent stock analyst Andrew Left, alleging he made millions of dollars of ill-gotten gains by making public comments to manipulate the stock prices of companies such as Nvidia, Tesla and Facebook while also investing in the companies.
Left, formerly of Beverly Hills and now a Florida resident, traded on his reputation as a regular commentator on cable business news channels. He operated his business out of Los Angeles through his firm, Citron Research.
A 19-count indictment returned by a federal grand jury in Los Angeles charged Left, 54, with securities fraud and lying to federal investigators. Left is expected to be arraigned in Los Angeles in the coming weeks, the U.S. attorney’s office said.
“Though Left represented to the public that his recommendations were to be trusted, behind the scenes, Left allegedly took contrary trading positions to reap quick profits off the stocks he either promoted or pilloried through Citron,” the Los Angeles U.S. attorney’s office said in a statement.
In a parallel investigation, the U.S. Securities and Exchange Commission on Friday announced a civil complaint against Left and his firm, saying that regulators uncovered alleged bait-and-switch tactics that netted them $20 million in illicit profits.
Left, reached by phone in Boca Raton, Fla., declined to comment, saying, “I’ll wait for my lawyer to wake up.”
His attorney, James Spertus of West Los Angeles, denied that Left made false statements. “He’s never once published an untrue fact,” he said.
“It’s just a defective theory on its face,” Spertus said of the allegations. “He doesn’t have a duty to disclose his private trading intentions.” Moreover, Spertus said, Left’s published reports contain detailed disclosures and disclaimers informing readers that he is trading in the stocks he writes about.
The indictment is the culmination of a three-year investigation by federal prosecutors in Los Angeles and Washington. A spokesman for the U.S. attorney’s office wouldn’t say whether the investigation extended more broadly to other short sellers. The tactics involved in short selling have been a subject of concern to market watchers and regulators. The trading strategy involves speculating in stocks in which investors borrow shares of a stock and hope to make a profit by betting the stock’s price will decline.

Business
Musk says he will seek shareholder approval for Tesla investment in xAI
Tech billionaire Elon Musk said he would like Tesla to invest in his artificial intelligence company xAI.
While Musk is considering the relationship between several of his businesses, he said on X that he does not support a merger between Tesla and xAI.
“If it was up to me, Tesla would have invested in xAI long ago,” Musk wrote on X on Sunday. “We will have a shareholder vote on the matter.”
xAI is the company behind the controversial chatbot Grok, which is available on X and also used in Teslas delivered on or after July 12. Grok came under fire earlier this month for praising Adolf Hitler and making antisemitic comments.
The AI company apologized for the chatbot’s behavior, saying that a coding problem temporarily made Grok susceptible to extremist views posted on X.
Earlier, Grok had contradicted itself while sharing information about the deadly flash floods that killed at least 130 people in Texas this month. The bot blamed President Trump for the flooding, but then backtracked and understated the death toll.
Musk is scrambling to keep up in the AI race after helping launch OpenAI with Sam Altman in 2015, the company behind the wildly popular chatbot ChatGPT, which helped spur on the current AI craze. Musk left OpenAI in 2018 and is now entangled in legal battles with the company.
In March, xAI acquired X in an all-stock transaction that valued the artificial intelligence company at $80 billion and the social media platform at $33 billion.
Musk scored a victory for Grok on Monday, when xAI announced “Grok for Government” and a contract with the U.S. Department of Defense.
After a disruptive stint in the Trump administration that sent Tesla shares stumbling, Musk formally stepped down from his role in the federal government in May. He has since been feuding with the president, further risking Tesla’s reputation, according to some experts.
Tesla shares rose slightly Monday after Musk’s posts about Tesla’s possible investment in xAI. The shares have fallen more than 16% this year. The company’s profit plunged 71% in the first quarter.
Tesla delivered 384,122 vehicles in the second quarter through June, down 13% from 443,956 deliveries a year ago.
Its shares rose more than 1% Monday.
Business
'Superman' rescues DC at the box office with a $122-million debut

James Gunn’s “Superman” soared to the top of the box office this weekend, giving Warner Bros.’s DC Studios much-needed momentum in the superhero genre after a string of underperforming movies.
“Superman,” which stars David Corenswet as the Man of Steel, hauled in a robust $122 million in the U.S. and Canada. Globally, “Superman” brought in a total of $217 million.
The movie was a big swing for Burbank-based Warner Bros. and DC, costing an estimated $225 million to produce, not including substantial spending on a global marketing campaign.
“Superman” benefited from mostly positive critics reviews — the movie notched a 82% approval rating on aggregator Rotten Tomatoes. Moviegoers liked it too, indicated by an “A-” grade from polling firm CinemaScore and a 93% positive audience rating from Rotten Tomatoes.
The performance for “Superman” fell short of expectations from some analysts, who had projected an opening weekend of $130 million. Industry observers attributed that to heavy competition from other blockbusters, including Universal’s “Jurassic World Rebirth” and Apple and Warner Bros.’ “F1 The Movie.”
Shortly before its release, “Superman” came under fire from right-wing commentators, who criticized comments Gunn made to the Times of London about how Superman (created by a Jewish writer-artist team in the late 1930s) is an immigrant and that he is “the story of America.”
“If there’s any softness here, it’s overseas,” said industry analyst and consultant David A. Gross in his FranchiseRe newsletter, after describing the domestic opening as “outstanding” for a longrunning superhero franchise.
The movie generated $95 million outside the U.S. and Canada.
Analysts had raised questions about whether Superman’s reputation for earnestly promoting truth, justice and the American way would still appeal to a global audience, particularly as other countries have bristled at the U.S. tariff and trade policies enacted by President Trump.
“Superman has always been identified as a quintessentially American character and story, and in some parts of the world, America is currently not enjoying its greatest popularity,” Gross said.
The movie’s overall success is key to a planned reboot and refresh of the DC universe. Gunn and producer Peter Safran were named co-chairmen and co-chief executives of DC Studios in 2022 to help turn around the Warner Bros.-owned superhero brand after a years-long rough patch.
While 2013’s “Man of Steel,” directed by Zack Snyder, and 2016’s “Batman v Superman: Dawn of Justice” each achieved substantial box office hauls, they did not receive overwhelmingly positive reviews. 2017’s “Justice League,” which was intended to be DC’s version of Marvel Studios’ “Avengers,” was a critical and commercial disaster for the studio.
More recently, films focused on other DC characters such as 2023’s “Shazam! Fury of the Gods,” “The Flash” and last year’s “Joker: Folie à Deux” struggled at the box office.
With Gunn and Safran at the helm, the pair are now tasked with creating a cohesive vision and framework for its superhero universe, not unlike its rival Marvel, which has long consolidated control under president Kevin Feige (though its films and shows are handled by different directors).
Starting the new DC epoch with Superman also presented its own unique challenges. Though he is one of the most recognizable superheroes in the world, Superman’s film track record has been a roller coaster. Alternatively sincere, campy or gritty, the Man of Steel has been difficult for filmmakers and producers to strike the right tone.
Gunn’s version of “Superman” — still mostly sincere but a touch of the filmmaker’s signature goofy humor — worked for critics and audiences. It was a tall order, considering some fans still hold Richard Donner’s 1978 “Superman,” starring Christopher Reeve, as the gold standard.
“Pinning down ‘Superman’ has been a challenge,” said Paul Dergarabedian, senior media analyst at Comscore. “It’s been like Kryptonite for years for many filmmakers and producers to get it right.”
“Superman” bumped “Jurassic World Rebirth” to second place, where it collected $38.8 million domestically over the weekend for a total of $231 million so far. “F1,” Universal’s “How to Train Your Dragon” and Disney-Pixar’s “Elio” rounded out the top five at the box office this weekend.
Later this month, another major superhero movie will enter the summer blockbuster marketplace: “The Fantastic Four: First Steps,” from Walt Disney Co.-owned Marvel Studios.
Business
It's peak season in Malibu, but these small businesses are still struggling after the Palisades fire

Six months after the Palisades fire roared down Pacific Coast Highway, the Country Kitchen in Malibu is open for business, but many customers have yet to return.
The no-frills eatery features a few outdoor tables and ocean views, nestled in a narrow parking lot alongside a liquor store and gift shop. The restaurant, which opened in 1972, is literally a hole in the wall. It serves breakfast burritos all day and burgers out of a window.
It wasn’t destroyed by the fires but had extensive smoke damage. It was cut off from most of its customers for close to five months, waiting for the highway to reopen. Business is a lot better than it was a couple of months ago, but still well below what the restaurant would usually see this time of year.
“Things are better, but if you compare it to last year, it’s still probably 25% less business,” said Joel Ruiz, who has worked at the Country Kitchen for 40 years.
Up and down the coast, businesses that survived the flames are still hoping for a return to normalcy. As customers slowly return to a changed landscape, the small businesses that dot Pacific Coast Highway wonder how long it will take to get back to business as usual.
1. Joel Ruiz works at the Country Kitchen on PCH as businesses reopen after being closed due to the Palisades fire. 2. A painting of the Country Kitchen hangs on the wall of the roadside restaurant.
PCH was closed to nonresidents for five months following the Palisades fire, isolating the once-bustling businesses that catered to beachgoers and tourists.
According to the California Department of Forestry and Fire Protection, the Palisades fire charred more than 23,000 acres and destroyed more than 6,000 structures. The blaze burned the vast majority of homes along the ocean from Topanga Canyon to Las Flores Canyon.
Nearly 800 structures were lost in Malibu, including the Reel Inn, a seafood restaurant just a few miles down the road from the Country Kitchen. Other popular restaurants including Duke’s Malibu are still closed due to damage. Caffe Luxxe near Carbon Beach was closed for months before reopening in May.

Jefferson Wagner, owner of Zuma Jay’s surf shop, reopens after being closed due to the Palisades fire.
It should be peak summer season for Zuma Jay’s, which has been selling boards and wax to surfers since 1975. Instead, sales are about a third less than normal.
“It’s better, but not like it was last year at the same time,” Jefferson Wagner said. He couldn’t pay his four employees for months.

Wagner holds an old young photo of himself and his daughter.
Some estimates put the total cost of the Los Angeles area wildfires at $250 billion. Gaps or delays in insurance coverage have kept many from cleaning or rebuilding their property at the pace they hoped.
“We’re still trying to get back to what we had before,” said Malibu City Councilmember Doug Stewart, who was serving as mayor during the Palisades fire. “The store owners and restaurants are telling me that things have picked up considerably, but they’re still not back to what they’d expect to see for the summer.”
Stewart said most businesses in the community were spared from being burned to the ground but are still struggling to reopen and stay viable.
“It’s less of a rebuilding issue and more of a question of making sure that they’ve been able to survive,” he said.
The businesses neighboring the Country Kitchen in the strip mall along PCH have all had to adapt to the aftermath of the fire. Even the view from the parking lot is different, with vast stretches of the ocean now visible where homes had previously stood.

Carter Crary, co-owner of scuba shop Malibu Divers, poses for a portrait shortly after his business reopened.
The scuba shop Malibu Divers officially reopened May 23, the same day Gov. Gavin Newsom reopened PCH. Co-owner Carter Crary came into the shop every day while the road was still closed, serving an occasional customer. Business was down about 90% for more than four months.
“There’s been a definite change since the highway reopened,” he said. “We are not yet where we should be for this time of year, but we’re on a trajectory that has us heading in the right direction.”
Malibu Divers doesn’t have business interruption insurance but was able to offset some of the losses caused by the fire with a Small Business Assn. emergency loan. Crary estimated his business has lost out on $150,000 in revenue since January. The shop earns between $500,000 and $1 million in a normal year.
Crary employs around 12 staff members, but he’s currently not able to pay or bring in his in-store employees. The dive shop, which offers rental gear and scuba lessons, opened in 1969 and is usually busiest between May and September.
Business has been further impacted because people aren’t diving in the areas where the Palisades fire burned. Most divers are going north for cleaner waters, Crary said.
Malibu’s scenic beaches, now contaminated with heavy metals and debris from the wildfire, usually attract customers to Roxanne Jensen’s souvenir shop, Blue Malibu, located a few doors down from Malibu Divers.
“It’s been very slow because people don’t know we’re open,” Jensen said. “We have to be patient. As long as the ocean is there, the customers will come back.”
Jensen closed her store for five months after the fire destroyed the merchandise on display and drove away tourists. July and August are typically big months for sales, said Jensen, who runs the shop with her husband.
Jensen’s landlord is allowing her to pay half her usual rent, but even that is hard to come up with, she said. She opened her shop 10 years ago and sells sweatshirts, swimwear and gifts.
Jensen said she has faith the Malibu community will rebound, like it has several times in the past after disastrous wildfires and landslides. She stood among her merchandise on a recent quiet Wednesday and was cautiously hopeful.
“Maybe next summer will be normal,” she said.
Though the Country Kitchen employees had to stay home with no pay for months, they are back now, serving chili cheese fries, omelets and buffalo burgers.
“People love this place,” Ruiz said, standing in front of spot where he has worked most of his life. “We had customers calling who wanted to come in, but for a long time they weren’t able to.”
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