Short selling firm Hindenburg Research is promising another big report soon
Notorious short selling investment research firm Hindenburg Research has promised to release another “major” report uncovering allegations of corporate fraud and wrongdoing.
“New report soon – another big one,” New York resident Hindenburg wrote in a tweet on Wednesday, minutes after US markets shut down. The company gave no further details and did not immediately respond to a query from DailyMail.com.
Far from being an unbiased watchdog, Hindenburg profits from taking large positions in the companies it issues reports on and betting that their stocks will fall as the markets digest the research.
However, Hindenburg’s research has previously resulted in criminal charges and convictions, including that of Nikola founder Trevor Milton, who was found guilty of deceiving investors with exaggerated claims about his electric truck company.
Hindenburg’s latest target was Indian billionaire Gautam Adani, who in a January report claimed his conglomerate Adani Group had “engaged in a brazen stock manipulation and accounting fraud scheme over the decades.”
Founded in 2017 by Nathan Anderson (above), Hindenburg Research is a financial forensic research firm that detects corporate fraud, corruption or wrongdoing
The Adani Group vehemently denied the claims and expressed shock at the allegations, which wiped out billions from the company’s market capitalization and its founder’s net worth.
Since the start of the year, Adani Group shares have fallen more than 50 percent, and Gautam Adani has lost an estimated $62 billion in net worth, falling from the world’s third-richest person to 21 on the Bloomberg Billionaires Index.
However, Hindenburg’s report, which accused the Adani Group of stock manipulation and tax haven abuse and cited “significant” levels of debt, was unproven in court.
The Adani Group has criticized the allegations as “a malicious combination of selective misinformation and outdated, unfounded and discredited allegations that have been examined and dismissed by India’s highest courts”.
Earlier this month, Adani Group tried to reassure investors by announcing that Gautam Adani and his family have prepaid all loans backed by shares in the company.
Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm that uncovers fraud, corruption or corporate wrongdoing.
It is named for the high-profile 1937 tragedy of the Hindenburg airship, which ignited on arrival in New Jersey, an incident the company describes as “the epitome of an entirely man-made, entirely preventable disaster.”
Hindenburg says it is looking for similar “man-made disasters” in financial markets “before they attract more unsuspecting victims.”
Hindenburg’s latest target was Indian billionaire Gautam Adani (above), who in a January report claimed his conglomerate Adani Group had “engaged in a brazen stock manipulation and accounting fraud scheme over the decades.”
Since the beginning of the year, Adani Group shares have fallen more than 50 percent and Gautam Adani has lost an estimated $62 billion in net worth
The firm typically spends months investigating, poring over financial disclosures and speaking to current and former employees.
The company invests its own capital and distributes its reports to limited partners who, together with Hindenburg, take short positions in the target companies.
Hindenburg’s most famous report came in 2020 when he accused Nikola’s founders of making misleading claims to seal partnerships with top auto companies hungry to catch up with Tesla.
Among his allegations, Hindenburg accused Nikola of staging a video showing one of his trucks driving down a street to reassure investors worried about product timelines.
Hindenburg said the video actually shows the truck rolling down a hill after being towed up.
Nikola and its founder Trevor Milton soon received grand jury subpoenas from prosecutors in Manhattan.
The Securities and Exchange Commission also issued subpoenas to directors of Nikola shortly after the report.
Nikola agreed in late 2021 to pay $125 million to settle SEC fees it had defrauded investors by misleading them about its products, technical advances, and commercial prospects.
Hindenburg’s most famous report came in 2020 when he accused Nikola founder Trevor Milton (center) of making misleading claims to seal partnerships with leading auto companies
Milton was found guilty in October of deceiving investors with exaggerated claims about his company’s progress in making 18-wheel zero-emission trucks that run on electricity or hydrogen.
In December, Milton asked the judge to overturn his conviction, saying a jury deciding the case hid her bias against the ultra-rich.
Milton’s sentencing has been delayed until June 21 as the court considers his allegations and counterarguments from prosecutors.
In the meantime, he remains free on a $100 million bond.
https://www.dailymail.co.uk/news/article-11893009/Short-seller-firm-Hindenburg-Research-promises-big-report-soon.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Short selling firm Hindenburg Research is promising another big report soon