New York Southern District Court Denies Susquehanna's Preliminary Injunction Motion in Insider Trading Case

Judge Arun Subramanian of the U.S. District Court for the Southern District of New York issued an opinion and order on September 14, 2026, denying the plaintiffs' motion for a preliminary injunction. The case is docketed as 1:26-cv-05474-AS, with plaintiffs market makers Susquehanna Securities, LLC and Susquehanna Investment Group, intervenor market maker Citadel Securities LLC, and defendants John Does 1 through 100.

The plaintiffs filed suit on June 29, 2026, asserting claims under Section 20A of the Securities Exchange Act of 1934 and unjust enrichment. The plaintiffs alleged that the defendants traded on material non-public information, namely that on May 22, 2026, there would be an announcement of "Chinese government crackdown on cross-border trading platforms," causing the relevant securities to crash. The plaintiffs sought a preliminary injunction to restrict the reduced group of 40 defendants from transferring, encumbering, removing, or otherwise disposing of proceeds obtained through the alleged insider trading activities in third-party broker accounts, or to seek a seizure order. The court found that the plaintiffs failed to demonstrate a likelihood of irreparable harm and other requirements, and the motion was denied.

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