Cogint's Stock Tumbles On Heavy Volume After Short Seller's Note

Shares of Cogint Inc. tumbled 11% in active morning trade Monday, following a negative report from a short seller alleging that a number of the data analysis company's insiders were under investigation for securities fraud. Volume spiked to over 1 million shares within the first hour of the regular session, compared with the full-day average of about 210,000 shares. The company did not immediately respond to a request for comment. Short seller Unemon said documents reveal that several Cogint insiders, including Chairman Michael Brauser, are facing multiple investigations by the Securities and Exchange Commission and the Department of Justice regarding collapsed stock promotions. The stock has run up 43% year to date, while the S&P 500 has gained 8.9%.

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