these guys are pros and they dont mess up on short reports. The activist short-seller behind Hindenburg Research has become known for research that sends companies' stock sinking. The investor lawsuit seeks damages for investors who owned shares between October 6, 2020, when the deal with Clover was announced, and February 3, 2021, when Hindenburg published the report on Clover. When THE SELL-OFF across stocks of the Adani Group, triggered by a Hindenburg Research report that accused it of "stock manipulation and accounting fraud", accelerated Friday with five of the nine listed group companies hitting the lower circuit, resulting in a loss of Rs 3.37 lakh crore in the group's market capitalisation. Can he win the perception war? A 'short' trade makes money if an investment's price falls. Yangtze sued Hindenburg, founder Nathan Anderson and a sister company, ClaritySpring Inc, for defamation in New York State Supreme Court in Manhattan, where Hindenburg is based. Published on January 29, 2023 January 30, 2023 Read Report. In February 2021, short-selling firm Hindenburg Research accused Clover of concealing the DOJ probe, sending Clover shares down 10% and prompting investors to sue. A regulatory crackdown led by the U.S. Securities and Exchange Commission, coupled with the poor financial performance of a majority of SPACs, spooked investors and triggered a huge selloff. After the report came out, the company, Enochian Biosciences Inc, issued a shareholder letter claiming that Hindenburg had misrepresented some of its communications with company officials about a Turkish criminal proceeding against the inventor. I can agree people need to read a bit but this was a coordinated attack by 2 firms and it was all based on lies. Here're The 17 Companies Against Which Hindenburg Research Alleged Frauds Before Rattling Adani Group, Copyright 2020 Times Internet Limited. The boom in SPAC deals such companies have raised nearly $200 billion since the beginning of 2020 has provided rich material for Hindenburg to investigate. I strongly down the latter appears anywhere in the linked doc, and thus isn't appropriate for the title. Many legal analysts have. How is this legal? DraftKings, in disclosing the S.E.C. Not with these securities and stocks. Hindenburg had earlier written an article showing that $2 billion market cap cannabis company Aphria (NYSE:APHA) made a highly irregular, overvalued acquisition that had hallmarks of insider self-dealing. Adani Group stocks . By the end of July, just under two months later, shares were trading at $1.50, a decline of almost 80%. Threatening a libel case and winning a libel case are worlds apart.. Gautam Adani's wealth has dropped over $80 . Hindenburg, which has the backing of several investors, also makes financial bets that the stocks of the companies Mr. Anderson is targeting will fall after the firm issues its research. Hindenburg Reach her at jody.godoy@thomsonreuters.com. Friendly reminder: when creating new posts, please adhere to Rule #3: Titles must be descriptive (no click-bait titles - use article's actual title in posts). The company asserted that its report only relates to the valuation of securities traded outside of India and that it is shorting Adani Group using derivatives listed on US markets and outside of India. Also mentioned on page 28, point 39: "Defendant John Doe No. They kind of deserve it at that point. When the stocks do fall, Hindenburg makes its money in what is called a short trade. Nate Anderson started Hindenburg in 2017. Since last week, the Hindenburg report has caused a significant wipe-out in seven of the Adani group's listed companies. In its two-year study, Hindenburg claimed that the Adani Group had participated in brazen stock manipulation" and accounting fraud over a period of decades and criticised the conglomerate's "substantial debt". In June, Mr. Burns left Lordstown along with other members of his management team. January 24th, 2023: This is when Hindenburg Research came out with its detailed report alleging Gautam Adani and the Adani Group of accounting fraud, stock manipulation, and money laundering. This is seemingly a crime, is it not? Agencies The SEC has launched an investigation into Hindenburg's claims. And he did that with Nikola.. Adani Response to Hindenburg . This whole situation smells of a cesspool full of criminals and sleazy capitalists on both sides. As one post put it, they were not specialists who exposed fraudulent activity - they themselves were frauds." Remove some to bookmark this image. Actually pumping is illegal. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. The context of financial analysis of companies, particularly, publicly traded companies, tends to be pure opinion, he added. Home; About us; Contact us; Twitter Seeking Alpha Stocktwits; Our Reply To Adani: Fraud Cannot Be Obfuscated By Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raised. Hindenburg They should first face the people who have suffered financial losses due to their report, he added. But what is more interesting is the mention of a small player in last years short attack: Clarity Spring Securities. The 3-day selloff has now erased nearly $65 billion market value amid a share sale by . Is Hindenburg Research under investigation in the US? Copyright HT Digital Streams Limited All rights reserved. It should work both ways. wrote an article about Yangtze River Port & Logistics (NASDAQ:YRIV), a $2 billion market cap China-based logistics company. [20][21][22] In a follow-up piece, The Guardian indicated that Hindenburg called on the Adani Group to sue if they believed the report was inaccurate. Hindenburg . And both of those lawsuits one by China-based real estate developer Yangtze River Port and Logistics Ltd; the other by Bollywood film producer Eros International Plc were tossed in 2019. Why is this interesting? It closed down 16.54% at $14.78. He says hes not in it just to move share prices. Adani Group Hindenburg . But the strategy can be risky because the stock could instead rise. Hindenburg sued, alleging that Enochian's factual false accusations, which were also filed with the U.S. Securities and Exchange Commission, had wrongly besmirched Hindenburgs well-deserved reputation for thoroughness, precision and accuracy., The tactic worked: Several weeks after the short seller brought its complaint in federal court in Manhattan, Enochian revised the SEC-filed shareholder letter to remove criticism of Hindenburg, which then dropped the suit. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. A Trending Reel Challenge That Can Win Us a Brand-New Swift? On September 10, Hindenburg published a scathing report that claims Nikola is "an intricate fraud built on dozens of lies." The report also took shots at Nikola founder Milton, claiming that he. As such, if the price of a company's stock or bonds fall because of the negative attention garnered by the report, Hindenburg stands to profit. Just a financial disclaimer imo. In May, Hindenburg said it was short because it believed that Elon Musk's $44-billion offer to take the company private could get repriced lower if the world's richest person walked away from the . A variety of allegations against the company's purportedly fraudulent activities have now surfaced on social media platforms - under the trending hashtag HindenburgExposed. Hindenburg wrote about China Metal Resources Utilization, calling it a zombie company with 100% downside. There is more regulations on things you can and cannot say. In May of 2020, HFFG took a massive $338.2 million goodwill impairment, resulting in a $339.9 million quarterly loss. The report is then circulated to Hindenburg's limited partners, who, together with Hindenburg, take a short position in the target company. In 2021, They have this one line in their disclaimer that seems quite nefarious and completely out of line. But discussing a company's shortcomings is normal amongst investors, Clarity and Hindenburg haven't been pulled into the sockpuppeting (as far as I can see) and the judge has told Eros this week that civil conspiracy isn't a thing in New York state. To be fair, youre quoting the Plaintiff's characterization of the events, correct? Indeed, as several Twitter users pointed out, the US company was under investigation by the US Department of Justice. Federal authorities are investigating Lordstowns claims. Now let us look at Hindenburg research's track record over the past six years 1. Concurrently, Hindenburg released a report claiming that Indian conglomerate Adani Group "has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. Now, it is not up to the Adani Group to measure the effects of its answers. [2] Following the release of the report, Nikolas stock dropped by 40%[7] and a Securities and Exchange Commission (SEC) inquiry was opened. Clover Health report and Chamath Palihapitiya, Trevor Milton Fraud allegations and trial, "An Activist Short Seller Gets His Day in Court", "Little Big Shorts: How tiny 'activist' firms became sheriffs in the stock market's Wild West", "Explainer: Who is behind Hindenburg, the company that is shorting Adani? A Skeptical Stock Analyst Wins Big by Seeking Out Frauds. March 1 (Reuters) - A U.S. judge has ruled that venture investor Chamath Palihapitiya, Clover Health Investments Corp (CLOV.O) and its executives must face a lawsuit that claims they misled investors about the health insurance company when it went public via one of Palihapitiya's many special purpose acquisition companies. [30], In May 2022, Hindenburg took a short position in Twitter, Inc. following the announcement of its acquisition of Twitter by Elon Musk. When a small brokerage firm Mr. Anderson had established to provide due diligence services to hedge funds faltered, he sold his brokerage license and started Hindenburg. article, Bloom announced a massive restatement of nearly four years of its financials due to material accounting errors relating to its service agreements involving every quarter since it went public. Hindenburg Hindenburg Research, a short seller whose report last October on Loop Industries brought to light problems with that advanced recycling technology company, is shining the light on yet another advanced recycling technology company, PureCycle. Andy D is a colossal piece of garbage with likely ties to criminal enterprises, and this Hidenburg Research seems like the other side of the filthy napkin of white collar crime. But based on Hindenburg's litigation on the U.S., I'd say India is probably a better bet. Nikola founder Trevor Milton resigned. 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