A lawyer for Andrew Left urged a judge on Monday to toss out securities fraud charges against the activist short seller, arguing that a criminal case with a threat of decades behind bars isn’t the way to create new rules for the industry. A parallel civil suit by the US Securities and Exchange Commission is a more reasonable way to…
Over the next months, big businesses will likely continue to urge regulators to ban short selling. Meanwhile, advocates will emphasize the value that short sellers bring to the capital markets, exposing frauds, and right-pricing stocks. Regulators do have a middle-ground: rather than ban short selling in toto, regulators may focus their attention and efforts on particular short-seller practices that pose…
Federal prosecutors in Washington are looking into short seller activity around the recent volatility in U.S. bank shares sparked by the failure of three regional lenders since March, a source familiar with the matter said. Short sellers, traders that profit by betting shares will fall, have come under scrutiny over the past week as government efforts to steady the sector…
Hindenburg Research, the small investment firm whose critical investigative reports pummeled shares in an Indian industrial conglomerate and an electric-vehicle start-up, has found its newest target: Jack Dorsey’s financial technology company, Block. Hindenburg published a 17,600-word report on Thursday accusing Block of overstating its user base and failing to stamp out fraud and illegal activity on its platforms — particularly…
“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” Adani’s statement said. In response, the Hindenburg firm denied the accusations and said Adani’s response largely confirmed its findings and failed to address key questions. It said…
The selloff in Gautam Adani’s corporate empire accelerated on Friday, erasing more than $51 billion of market value in two sessions as Asia’s richest man struggles to contain the fallout from a scathing report by US short seller Hindenburg Research. The rout is piling pressure on the Indian tycoon as it erodes his net worth and threatens to sour investor…
Over the past few years, Nathan Anderson has made a name with analysis that sends stocks sinking. Now the activist short seller behind Hindenburg Research is going after his biggest game yet — what Hindenburg is calling, with characteristic chutzpah, “The Largest Con in Corporate History.’’ His target: Indian industrialist Gautam Adani, a figure even richer than Bill Gates or Warren Buffett, with…
A former Nikola Corp. contractor whose allegations of fraud at the electric truck maker helped spur a criminal investigation told a federal jury he made $600,000 off a short seller’s report on the company. Paul Lackey, an engineer at the electric-drive systems company EVDrive that did contract work for Nikola, was testifying under questioning by the defense in the criminal…
The Securities and Exchange Commission today charged a pair of college professors in Tallahassee, Fla., with perpetrating a complex naked short selling scheme for more than $400,000 in illicit profits. via SEC Charges Two College Professors in Naked Short Selling Scheme — SEC Press Release
The SEC has ordered more than two dozen hedge funds to hand over trading information as part of its effort to crack down on false rumors and abusive short selling, the WSJ reports this morning. In the order that went out to hedge funds dated September 22, the SEC reportedly referenced six financial institutions that may have been subject to…