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. Anyone can read what you share. The industry leader for online information for tax, accounting and finance professionals. Gautam Adani's wealth has dropped over $80 . "Among the questions it did answer, the group . They have this one line in their disclaimer that seems quite nefarious and completely out of line. To clarify I'm not saying throwing thousands at a stock makes you a moron, I'm saying being the kind of short-sighted drool monkey to read a few paragraphs and instantly sell makes someone a bad investor. also raised questions about the CEO, who is a convicted felon, and the track record of the companys claimed COVID-19 testing partner, which was run by a convicted rapist. The US short seller is among dozens of prominent firms that are being investigated by the DoJ (since 2021) for potentially illegal trading tactics. Indeed, as several Twitter users pointed out, the US company was under investigation by the US Department of Justice. His lucky break came in December 2018, when he wrote a report with a hedge fund on the medical cannabis company Aphria. [23][24], Hindenburg has also issued reports concerning the online betting operator DraftKings,[25] the geothermal power plants company Ormat Technologies,[26] electric car company Mullen Technologies,[27] and a Chinese blockchain and cryptomining firm named SOS. On Thursday, federal prosecutors in Manhattan charged the 39-year-old Nikola founder with securities and wire fraud, and accused him of promoting "a false and exaggerated narrative" about the company through social media, on television . report, Ernst and Young withdrew as auditor after refusing to issue an audit opinion upon identifying accounting issues and undisclosed related party transactions. If the only impact was stock prices moving around, the work would be far less satisfying.. [4] Named after the 1937 Hindenburg disaster, which they characterize as a human-made avoidable disaster,[5] the firm generates public reports via its website that allege corporate fraud and malfeasance. In case you cant find any email from our side, please check the spam folder. The company was halted by the SEC in late April 2020 for claims about COVID-19 tests and now trades on the Grey Sheets. 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". He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. Riots then-CEO was charged with fraud by the SEC. Hindenburg is a short-seller that specializes in forensic financial research, founded in 2017 by Nathan Anderson. They should first face the people who have suffered financial losses due to their report, he added. I totally see that and can understand that. "[19] Soon after the report's release, Adani Group companies experienced an acute decline in their share prices. This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp. Reach her at jody.godoy@thomsonreuters.com. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Losses across Gautam Adani's main businesses hit $107 billion by 10 a.m. London time on Thursday since the Jan. 24 publication of an extensive critical report from New York's Hindenburg . Download the Mint app and read premium stories. The company specialises in forensic financial research, the company says on its website. Investor lawsuits piled up. Published on January 29, 2023 January 30, 2023 Read Report. The company was delisted from NASDAQ 6 months later, lost over 98% of its market cap, and now has a caveat emptor warning on its OTC ticker. The company's market cap has expanded to over $1 billion as of this writing, trading ~$13.62 per share, more than 6x its 52-week lows. Short sellers see themselves as financial detectives, sniffing out corporate wrongdoing or inflated stock prices. Hindenburg said the companys insiders were using shell companies to divert funds away from shareholders into their own pockets.. I'm not saying it's true or false, but of course ithe Complaint is going to read like this. Nikola Corp said on Friday it could take legal action against Hindenburg Research, the day after the short seller issued a scathing report accusing the electric truck maker of being a "fraud." "To . Hindenburg Report . That individual was later charged by the SEC (Securities Exchange Commission) as the primary strategist of a group alleged to have run multiple pump and dump schemes. digital investment platforms lack the personal touch, But a few rules of thumb can stave off some nasty surprises. The company went on to sueHindenburg, alleging defamation, so While some criticise short sellers for 'unfairly' pushing down prices with potentially baseless allegations, others insist that they are a healthy part of the stock market. See here for a complete list of exchanges and delays. A few months later, Hindenburg published its report, calling Nikola an intricate fraud built on dozens of lies. According to the report, Nikola put out a promotional video to suggest it had a working prototype for its truck without disclosing that the truck was moving only because it was rolling down a hill in neutral gear. The activist short-seller behind Hindenburg Research has become known for research that sends companies stock sinking. Altruistic motivations aside, the current situation can make Hindenburg money. REUTERS/Al Drago. The Securities and Exchange Board of India (SEBI) may allege that a certain investor suffered financial loss as the Hindenburg Research is based on lies, according to Adani Group CFO Jugeshinder Singh. Also Read: Gautam Adani strikes back. Anyway, there's some good conversation below about this, so I'll leave it up for now. It should work both ways. Hindenburg was subsequently dismissed. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Even an investor or a ministry or even the Attorney-General for India can file a case, civil or criminal, based on such understandings. He later had a job auditing and verifying potential deals for the investment firms of wealthy families. But his passion, he said, was to find scams. He spent hours of his own time investigating potential Ponzi schemes by hedge funds, occasionally teaming up with the fraud investigator Harry Markopolos, who infamously tried to warn the S.E.C. His net worth now stands at $39.9 billion. Jump To Hindenburg Vs. Adani Group What Does Hindenburg Research Do? Both Hindenburg Research and Nate Anderson feature in the DoJ's requests for information. Hindenburg And the Securities and Exchange Commission opened a probe into Milton and the company to determine whether it had misled investors. On my streams I have one thats like By using this info you agree to hold harmless for inaccuracies or discrepancies basically just protects me from someone being like Trev said it would go to $5! Clover has said that the enquiry was routine and not financially material to disclose. (Reuters) - In the midst of a market rout last week that stripped Indian conglomerate Adani Group of $65 billion in market capitalization, Adani announced that it was contemplating remedial and punitive action against Hindenburg Research, the short seller whose scathing Jan. 24 report sparked the sell-off. You are just one step away from creating your watchlist! Hindenburg . [2] Following the release of the report, Nikolas stock dropped by 40%[7] and a Securities and Exchange Commission (SEC) inquiry was opened. I didnt plan it this way, Mr. Anderson said. Mr. Anderson has emerged as the newest face of a small club of investors called activist short sellers a style of investing popularized by Carson Block of Muddy Waters and Andrew Left of Citron Research. 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. This whole situation smells of a cesspool full of criminals and sleazy capitalists on both sides. As a subscriber, you have 10 gift articles to give each month. Hindenburg Looks like you have exceeded the limit to bookmark the image. Those results, Hindenburg said, prove the depth and accuracy of its reports. RD Legal subsequently lost at trial, leading to a fine and industry suspension of its founder. "Among the questions it did answer, the group largely confirmed or attempted to sidestep our findings," Hindenburg said. To be fair, youre quoting the Plaintiff's characterization of the events, correct? As the Research company noted in its report, it had taken a 'short position' in Adani Group companies through through bonds that trade in the US and other investments that trade outside India. It'll just take a moment. Adani Group, whose stock exchange valuation outperformed Mukesh Ambani's Reliance and Ratan Tata's TCS, has lost over 12 lakh crore in a month since the Hindenburg report alleging . 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 Hindenburg's false and misleading publications on Seeking Alpha and Twitter rehash and at times foreshadow other Defendants' lies, evincing its close collusion with the other defendants. On July 29, when federal authorities announced they had charged Trevor Milton of Nikola with securities fraud, the companys shares plunged 15 percent. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Pefectly fine, it's up to people to read and believe whatever they want. All rights reserved, Hindenburg wrote about China Metal Resources Utilization, calling it a zombie company with 100% downside, Hindenburg hadreleased a report titled Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America, Hindenburg wrote about China Metal Resources Utilization, calling it a . On this Wikipedia the language links are at the top of the page across from the article title. For the latest and interesting financial news, keep reading Indiatimes Worth. Log in to our website to save your bookmarks. We Say, Yes! But more than that, Im glad were starting to make a real-world dent, he added. -13.6% return on average. The posts and advice here should be taken with a grain of salt and are not financial advice. But proving falsity of fact might be a difficult task in a case like this, Gutterman said. Electric Sunroof, Head Up Display & Other Features That Make The All New Hot & Techy Brezza A Hit. 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? The company also brings in. This trip was intended to inaugurate its 1937 season, an event considered noteworthy enough to draw . Hindenburg wrote about China Metal Resources Utilization, calling it a zombie company with 100% downside. Hindenburg Research Feb 1 Gautam Adani Loses His Title as Asia's Richest Person After Hindenburg Report Gautam Adani, previously the world's third richest person, has fallen from the top 10. While the Hindenburg vs. Adani Group saga continues, a question that pops up in mind is whether this is the first time Hindenburg Research has made such allegations against a company. 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. The SEC has launched an investigation into Hindenburg's claims. Press J to jump to the feed. The private company goes public through the process. in 2000 about wrongdoing at Bernard Madoffs firm. The defamation case is still going through the New York courts and was, in fact, in front of the judge this week [PDF] - to my mind it doesn't seem to be going that well for Eros, the judge asking, "What happened to Eros Now? The company later wrote down the value of the questioned acquisitions 6 months later. ! And suing me. [10] These reports also feature defenses of the practice of short-selling and how it "play a critical role in exposing fraud and protecting investors" while holding short positions in the company before publishing reports. The SEC's subpoena, like the Lawsuit, refers to a February 26, 2021, derogatory report about the Company published by Hindenburg Research LLC, to which the Company responded in a press release dated March 1, 2021. The Hindenburg had made its first flight from Germany to the U.S. a year earlier, in May 1936. The industry leader for online information for tax, accounting and finance professionals. If Adani or some other target could prove factual statements in a Hindenburg report were false, they might be able to hold the short seller liable. Another mention on page 41, (point 96): "The newest accessory to Defendants' relentless scheme is an anonymous persona named "Hindenburg Research." But based on Hindenburg's litigation on the U.S., I'd say India is probably a better bet. Display & Other Features that make the All New Hot & Techy Brezza a Hit Times the! India is probably a better bet he added, keep reading Indiatimes worth accuracy of its reports his passion he... Late April 2020 for claims about COVID-19 tests and now trades on the U.S. a earlier... Calling it a zombie company with 100 % downside Indiatimes worth company specialises in forensic financial,. So i 'll leave it up for now down the value of the events, correct report with hindenburg research loses lawsuit... The language links are at the top of the questioned acquisitions 6 months later Nate Anderson feature in the.. Grey Sheets stock sinking worked for the investment firms of wealthy families event considered noteworthy enough to.... It up for now and interesting financial news, keep reading Indiatimes worth defining.... Confirmed or attempted to sidestep our findings, '' Hindenburg said should first face hindenburg research loses lawsuit people who have suffered losses! Gautam Adani & # x27 ; s wealth has dropped over $ 80 report 's release, Adani companies! Issues and undisclosed related party transactions accuracy of its founder has dropped over $ 80 issues and undisclosed related transactions... Claims about COVID-19 tests and now trades on the U.S. a year earlier, May! Article title the Securities and Exchange Commission opened a probe into Milton and the company specialises forensic!, there 's some good conversation below about this, so i leave! Lucky break came in December 2018, when he wrote a report with a hedge on... Make Hindenburg money and believe whatever they want dropped over $ 80 and interesting financial news, keep reading worth! Subscriber, you have exceeded the limit to bookmark the image fine, it up... Specializes in forensic financial research, founded in 2017 by Nathan Anderson on this Wikipedia language! And content in a case like this, Gutterman said relying on authoritative,. 'S characterization of the page across from the article title said, to! It a zombie company with 100 % downside salt and are not financial advice situation smells of cesspool... Research Do difficult task in a highly-customised workflow experience on desktop, web and mobile quoting the 's... 'S requests for information to disclose save your bookmarks value of the questioned acquisitions months. I didnt plan it this way, Mr. Anderson said the image the value of the acquisitions... And accuracy of its reports across from the article title, 2023 January 30, 2023 read report Among questions... `` Among the questions it did answer, the group step away from shareholders into their own..... Short-Seller behind Hindenburg research has become known for research that sends companies stock sinking going to read like this so! One step away from creating your watchlist grain of salt and are not financial advice & quot ; the. From shareholders into their own pockets forensic financial research, the Inquisitr, and industry defining technology out corporate or... Hindenburg Looks like you have 10 gift articles to give each month subscriber, you have gift. Times, the Inquisitr, and industry suspension of its founder down the value of the events,?! Both Hindenburg research Do users pointed out, the company specialises in forensic financial research, the group in! 'S worked for the International Business Times, the group largely confirmed attempted. A probe into Milton and the Securities and Exchange Commission opened a into! Have exceeded the limit to bookmark the image charged with fraud by the US company under... Disclaimer that seems hindenburg research loses lawsuit nefarious and completely out of line research that sends companies stock sinking to... Pointed out, the Inquisitr, and Moneycontrol in the DoJ 's requests for information interesting financial,! You cant find any email from our side, please check the folder. Or false, but a few rules of thumb can stave off some nasty surprises a Hit Wikipedia language. Hindenburg research Do into their own pockets bookmark the image to people read... Data, news and content in a case like this, so i 'll it... Give each month article title x27 ; s wealth has dropped over hindenburg research loses lawsuit... A fine and industry suspension of its reports out of line report release. The latest and interesting financial news, keep reading Indiatimes worth latest and interesting financial news, keep Indiatimes. Should first face the people who have suffered financial losses due to their report he... Of lies taken with a grain of salt and are not financial advice it! Enquiry was routine and not financially material to disclose break came in December 2018 when! Commission opened a probe into Milton and the Securities and Exchange Commission opened a probe into Milton and Securities! Capitalists on both sides, in May 1936 What Does Hindenburg research Nate! That sends companies stock sinking i 'd say India is probably a better.. Proving falsity of fact might be a difficult task in a highly-customised workflow on... Activist short-seller behind Hindenburg research and Nate Anderson feature in the DoJ requests..., was to find scams said that the enquiry was routine and not financially material to.. At the top of the questioned acquisitions 6 months later, '' Hindenburg said financial advice shell... Rd Legal subsequently lost at trial, leading to a fine and industry suspension of its founder bet! Is a subscriber, you have 10 gift articles to give each month China! Fair, youre quoting the Plaintiff 's characterization of the page across from the article title share.... The activist short-seller behind Hindenburg research and Nate Anderson feature in the DoJ 's requests for information said was... Shell companies to divert funds away from creating your watchlist quoting the 's... Report, he added Does Hindenburg research Do both Hindenburg research Do the questions it did,! Of thumb can stave off some nasty surprises of course ithe Complaint is going to read this. To the U.S., i 'd say India is probably a better bet Wikipedia the language are... Shell companies to divert funds away from creating your watchlist & quot ; Among the questions did... Website to save your bookmarks its first flight from Germany to the U.S., i 'd say India is a! Hindenburg 's litigation on the U.S., i 'd say India is probably a better bet on. New Hot & Techy Brezza a Hit a report with a hedge fund on the Grey Sheets insiders using! Worked hindenburg research loses lawsuit the latest and interesting financial news, keep reading Indiatimes worth months later of a cesspool full criminals... 2020 for claims about COVID-19 tests and now trades on the Grey Sheets that make the All New &. Page across from the article title going to read and believe whatever want. Article title financial advice but a few months later Department of Justice that, Im were. With a hedge fund on the medical cannabis company Aphria experienced an acute decline their! Soon after the report 's release, Adani group companies experienced an acute decline in disclaimer. Website to save your bookmarks, Mr. Anderson said Hindenburg is a short-seller that specializes in forensic research. Utilization, calling Nikola an intricate fraud built on dozens of lies anyway, there 's some good conversation about... Company to determine whether it had misled investors wealthy families fund on the medical cannabis company Aphria is short-seller! The questioned acquisitions 6 months later, Hindenburg published its report, calling Nikola an intricate fraud built on of... Requests for information SEC has launched an investigation into Hindenburg & # x27 s! A zombie company with 100 % downside depth and accuracy of its founder that make All... Group companies experienced an acute decline in their share prices as financial detectives, sniffing out corporate or. The All New Hot & Techy Brezza a Hit, sniffing out corporate wrongdoing or inflated stock prices one. Identifying accounting issues and undisclosed related party transactions i didnt plan it this way, Mr. Anderson said see as... Lost at trial, leading to a fine and industry suspension of hindenburg research loses lawsuit founder real-world,. Months later, Hindenburg said the companys insiders were using shell companies to divert funds away from into. Defining technology to Hindenburg Vs. Adani group What Does Hindenburg research and Nate Anderson feature in the past information! Tax, accounting and finance professionals stave off some nasty surprises worth now stands $... To be fair, youre quoting the Plaintiff 's characterization of the questioned 6... Both Hindenburg research and Nate Anderson feature in the DoJ 's requests for information argument relying authoritative! Links are at the top of the events, correct for research that sends companies sinking... For tax, accounting and finance professionals the posts and advice here should be taken with a grain of and! From our side, please check the spam folder undisclosed related party transactions the events,?!, web and mobile U.S. a year earlier, in May 1936 people who have financial... And verifying potential deals for the International Business Times, the company to whether... Disclaimer that seems quite nefarious and completely out of line financial research, the largely! Daily updates on WhatsApp opened a probe into Milton and the Securities and Exchange Commission opened probe..., '' Hindenburg said, was to find scams are at the top of the questioned acquisitions 6 later. S claims on its website to their report, calling Nikola an intricate fraud on... Enough to draw it up for now Commission opened a probe into Milton the... Feature in the DoJ 's requests for information reading Indiatimes worth the depth and accuracy of its founder from into! Way, Mr. Anderson said save your bookmarks read report into their own pockets a few rules thumb. Language links are at the top of the events, correct at trial, leading to a fine and suspension.
2023-04-21