Digital Brands (DBGI) said Monday it will submit compliance demands to clearinghouses and prime brokers ahead of legal pursuit of allegations of market manipulation.

The company said it retained legal counsel last week to investigate any potential naked short selling or other market manipulation.

Digital Brands said it is seeking a forensic audit to identify anomalies in the trading of its stock, and that it will maintain a zero-tolerance policy regarding predatory, abusive, and illegal trading practices that actively harm our retail shareholders and distort true market valuation."