Skip to main content

Market Overview

Short Seller Andrew Left Goes Sour On Lemonade, Says Company Lies To Shareholders

Short Seller Andrew Left Goes Sour On Lemonade, Says Company Lies To Shareholders

Andrew Left

Citron Research’s Andrew Left criticized insurance company Lemonade Inc (NYSE: LMND) on Friday, saying its stock multiple is based on empty marketing tactics.

The Lemonade Bear Case: In a Twitter live video, Left dismissed Lemonade Inc's claims of bringing new technology to the insurance industry, saying the company's technology is no different from insurers like Progressive Corp. (NYSE: PGR) or State Farm.

"They've been lying to their customers and their shareholders," said the noted short seller.

The company has not responded to a request for comment.

Not An ESG Company: He also blasted Lemonade's claims of being a "social good" company as an easy marketing ploy.

Left said Lemonade is taking advantage of younger investors' interest in supporting companies that have a positive social impact, like Tesla Inc (NASDAQ: TSLA).

"It's playing on the millennial investors," he said, adding that the company has a higher multiple than Zoom Video Communications (NASDAQ: ZM), Uber Technologies Inc (NYSE: UBER) or Tesla Inc (NASDAQ: TSLA).

Lemonade insiders have sold $400 million in the past six months but gave just $1 million to charity last year, he said.

Left said the Securities and Exchange Commission and the Federal Trade Commission should look more closely at companies that make claims of being socially responsible.

Price Action: Shares of Lemonade ended Friday's trading down 6.79% at $147.74 on Friday. Left's video posted to Twitter at 11:30 a.m.

Related Link: XL Fleet Spikes On CEO’s CNBC Plug, Citron’s Long Call


Related Articles (LMND)

View Comments and Join the Discussion!

Posted-In: Andrew Left Citron Research FTCNews Short Sellers Short Ideas SEC Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at