Once again, insiders later admitted to having undisclosed stakes in its own acquisitions, leading to the resignation of the companys Chairman/CEO, a co-founder, and an executive/board shake-up. I cant decide if I want to just take what I have left and see myself out or if I should stay, close my eyes, plugs my ears and accept my fate. Hindenburg Oops! Hindenburg didnt respond to my email query, but said in a statement last week that any action by Adani would be meritless and that it would welcome to opportunity to obtain discovery from the Indian company in U.S. litigation. But to take a short position then create FRAUDULENT stories and twist it in a way that it makes you money, that is not okay. For the latest and interesting financial news, keep reading Indiatimes Worth. In particular, they often look for situations where companies may have any combination of: -Bad actors in management or key service provider roles, -Illegal/unethical business or financial reporting practises, -Undisclosed regulatory, product, or financial issues, Also Read:Hindenburg Effect: Mukesh Ambani Replaces Gautam Adani As Richest Indian & Asian On Forbes List. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Hindenburg wrote about HF Foods (NASDAQ:HFFG), specifically calling out the, Following How do these allegations benefit Hindenburg anyway? Friday's losses will reduce that gap. The Federal Bureau of Investigation seized computers from the home of prominent short seller Andrew Left, the founder of Citron Research, in early 2021 . specifically pointed out issues relating to the companys accounting around its service agreements. 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. Their experience in the investment management industry spans decades, with a historical focus on equity, credit, and derivatives analysis. 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. Adani Group stocks . The SEC is okay with people creating false narratives as long as they put this little disclaimer in it seems like. Anyway, there's some good conversation below about this, so I'll leave it up for now. 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. If they never changed the story up and lied and made claims it is okay. By the end of July, just under two months later, shares were trading at $1.50, a decline of almost 80%. Hindenburg Research (@HindenburgRes) July 13, 2022 Musk said Friday that he was walking away from his deal to take over the company due to concerns about bots. And he did that with Nikola.. With a $21 billion loss, Adani Total Gas came out on top. It's still a great product? The short seller also repeatedly hedged its accusations with words like we think and we believe, Sherwood said, and noted throughout the report that its views were based on public documents that Hindenburg hyperlinked. Both Hindenburg Research and Nate Anderson feature in the DoJ's requests for information. 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. If the only impact was stock prices moving around, the work would be far less satisfying.. In late 2018 the companys Chairman/CEO and the company itself were all charged with fraud by the SEC. Mr. Miltons lawyers have denied the charges, and the company has said it cooperated with authorities. I totally see that and can understand that. Pumpers are bad but shorts are okay? (Enochian counsel Clayton Parker of K&L Gates declined to comment on the case.). 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 . Hindenburg wrote an article detailing why Our Standards: The Thomson Reuters Trust Principles. At the same time, they build a short position in the stock, borrowing shares of a target company from a brokerage firm and then selling them, expecting the stock price will fall on account of their negative research. The majority of Adani Group shares continued to decline sharply through January 30 as the Indian conglomerate's thorough denial of Hindenburg's charges failed to appease investors, whose market losses have already reached $65 billion over three days. 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. Oops! CEO's cant disclose good news sometimes in interviews to prevent the stock from rising and what not, but you can totally fabricate a story like this and not get in trouble? Divgi TorqTransfer IPO: GMP rises, 2 more days to bid. Hindenburg showed how the company was under severe financial distress and identified numerous accounting irregularities, including evidence of undisclosed related party transactions. His lucky break came in December 2018, when he wrote a report with a hedge fund on the medical cannabis company Aphria. The company also brings in. [11], Hindenburg Research prepares its investigation report on a target company in six or more months by going through its public records and internal corporate documents, as well as talking to its employees. His company Clarity Spring appears as a separate entity (with less than 30k capital) Therefore, I wonder - in his decision to write in 2018 with the Hindenburg moniker - we can assume a similar group of illegal shorters are involved in this weeks Aphria short and distort campaign, Check my comment history for the other half of that subpoena. Lordstown was also planning to go public through a SPAC and had earlier attracted the attention of former President Donald J. Trump as well as General Motors, which sold the company its assembly plant in Lordstown, Ohio. He's also contributed to Free Press Journal and TheRichest with feature articles. The company was halted by the SEC in late April 2020 for claims about COVID-19 tests and now trades on the Grey Sheets. They have shit reviews. The SEC has launched an investigation into Hindenburg's claims. 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 . Last month, federal authorities charged the founder of the electric vehicle manufacturer Nikola, which had gone public in the summer of 2020, with defrauding investors. There are just so many outrageous companies, Mr. Anderson said. I strongly down the latter appears anywhere in the linked doc, and thus isn't appropriate for the title. The company later wrote down the value of the questioned acquisitions 6 months later. But the sharp sell-off in shares, which began Wednesday, accelerated. I am even basically. Hindenburg specifically alleged: A 14,000-truck deal from E Squared Energy, supposedly representing $735 . This happens all of the time, theres tons of other firms that do the same thing. Not with these securities and stocks. Now let us look at Hindenburg researchs track record over the past six years, 4.May 2020-China Metal Resources Utilization, 10. 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. 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. Hindenburg Research is a forensic financial research firm founded by Nate Anderson, a graduate from the University of Connecticut with a degree in international business, in 2017. Hindenburg Hindenburg Research, the short-seller firm whose report on Nikola Motor led to an SEC investigation and the resignation of its founder, is targeting another electric vehicle company. Jump To Hindenburg Vs. Adani Group What Does Hindenburg Research Do? The Justice Department is collecting a trove of information on dozens of investment firms and researchers engaged in short selling as part of a sweeping U.S. hunt for potential trading abuses, according to people with knowledge of the matter.. Published on January 29, 2023 January 30, 2023 Read Report. 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. The lawsuit against Mr. Anderson could not resist taking an online victory lap. Hindenburg This is a complaint filed by the Plaintiff. Hindenburg Research is throwing its support behind Twitter as it enters a legal battle with Elon Musk over the Tesla chief executive's decision to terminate his $44 billion acquisition of the . He says hes not in it just to move share prices. Hindenburg Research LLC is an investment research firm with a focus on activist short-selling founded by Nathan Anderson in 2017 and based in New York City. You are just one step away from creating your watchlist! Palihapitiya has been dubbed the "SPAC King" for his run of so-called "blank check" firms, which are empty shells of cash that are raised for the specific purpose of merging with a private target within two years of the SPAC being listed. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The company went on to sueHindenburg, alleging defamation, so Were All in for Arena Reel Star! It has become a successful enterprise, he said of his firm. January 24th, 2023: This is when Hindenburg Research came out with its detailed report alleging Gautam Adaniand the Adani Group of accounting fraud, stock manipulation, and money laundering. A place to lose your money with the help of friends and likewise degenerates. Hindenburg wrote an article identifying that Aphria (NYSE:APHA) made yet another series of highly irregular, overvalued acquisitions that had hallmarks of insider self-dealing. its efforts with numerous additional findings. Our Standards: The Thomson Reuters Trust Principles. Hindenburg said the companys insiders were using shell companies to divert funds away from shareholders into their own pockets.. 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. Adani Response to Hindenburg . Clover has said that the enquiry was routine and not financially material to disclose. 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. Even an investor or a ministry or even the Attorney-General for India can file a case, civil or criminal, based on such understandings. The Eros case naming Hindenburg, Anderson and ClaritySpring is another example. Last summer, two whistle-blowers provided Hindenburg with a tip about Nikola, the electric truck maker that had gone public in June 2020 via a $700 million merger with a special purpose acquisition company called VectorIQ. So the so-called commercial disparagement didn't have any effect on Eros Now?" Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. The report also argued that billionaire stock promoter and entrepreneur Chamath Palihapitiya neglected his due diligence and misled investors as he took the company public via special purpose acquisition company. If the stock does fall, the short seller buys the now-cheaper shares back, returns them to the broker and pockets the difference. In other words, these are accusations, not a verdict. Most courts in the U.S. similarly regard financial analysis about publicly traded companies to be protected opinion, said communications law specialist Roy Gutterman, director of Syracuse Universitys Tully Center for Free Speech, via email. Frankel is the author of Double Eagle: The Epic Story of the Worlds Most Valuable Coin. Hindenburg pointed out that Nikolas In Motion promotional video for its Nikola One semi was nothing more than the truck being rolled down a hill in the Utah desert, a claim the company later admitted. Remove some to bookmark this image. The activist short-seller behind Hindenburg Research has become known for research that sends companies stock sinking. It has since lost ~90% of its value. 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 . Sometimes called a blank check company, a SPAC raises money from investors through a public offering and has two years to find an operating business to merge with. 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. 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? Founded in 2017, Hindenburg specializes in publishing detailed reports about publicly traded companies, poking holes in their stories and alerting investors to potential malfeasance. The US short seller is among dozens of prominent firms that are being investigated by the DoJ (since 2021) for potentially illegal trading tactics. Catch all the latest. Adani Ports and Special Economic Zone Ltd, U.S. Congress votes to block ESG investing, Biden veto expected, VP Harris breaks tie for 2nd time to confirm Biden judicial pick, U.S. House panel approves bill giving Biden power to ban TikTok, EU silence over Pfizer COVID contract talks is problem that won't go away -watchdog, China scoffs at FBI claim that Wuhan lab leak likely caused COVID pandemic, Law firm leaders express the benefit of strategy, culture & adaptability to weather these uncertain times, 2023 State of the Courts Report: Moving toward modernization, US enforcement seeks fraud among emerging, unregulated finance spaces, Recommended change management practices to plan, build, then deploy successful legal tech, Exclusive news, data and analytics for financial market professionals, stripped Indian conglomerate Adani Group of $65 billion. By Alison Frankel (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. SC Worx was halted by the SEC on the same day as Predictive Technologies in late April,as mentioned on Hindenburg website. Many of the articles at issue here were posted on online forums that generally traffic in sharing financial opinions, Cohen wrote. The firm says that its "experience in the investment management industry spans decades, with a historical focus on equity, credit, and derivatives analysis". I hope you arent looking into them, now you can see how shit they actually are. Also Read: A calculated attack on India: Adani Group on Hindenburg allegations. But based on Hindenburg's litigation on the U.S., I'd say India is probably a better bet. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. The hard part is that they are sleeping and eating well. But more than that, Im glad were starting to make a real-world dent, he added. Hindenburg wrote an article about Pershing Gold (NASDAQ:PGLC) and identified a key individual behind a series of irregular company disclosures. Just hate to see others lose money. . Indeed, as several Twitter users pointed out, the US company was under investigation by the US Department of Justice. first wrote about the company less than a year earlier, it had a market cap of ~$1 billion. Moreover, he said that the Adani Group had attached relevant documents in support of each answer. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The Hindenburg had made its first flight from Germany to the U.S. a year earlier, in May 1936. In 2021, The report is then circulated to Hindenburg's limited partners, who, together with Hindenburg, take a short position in the target company. The profits from the short bet allowed Mr. Anderson to stay in his apartment. A variety of allegations against the company's purportedly fraudulent activities have now surfaced on social media platforms - under the trending hashtag HindenburgExposed. Which is why it is illegal for pumpers. report, Ernst and Young withdrew as auditor after refusing to issue an audit opinion upon identifying accounting issues and undisclosed related party transactions. A Skeptical Stock Analyst Wins Big by Seeking Out Frauds. Disgusting. They later settled the charges. It closed down 16.54% at $14.78. The posts and advice here should be taken with a grain of salt and are not financial advice. After Musk's attempted termination of the deal, Hindenburg took a significant long position in Twitter betting against Musk on the acquisition to close.[3]. Mr. Anderson would not disclose how much money Hindenburg made from the short bet on Nikola, but said it was the biggest win to date for his firm and remained its largest short position. The 31-page suit Plaintiff pursues . ", "Hindenburg vs Adani: The Short Seller Taking on Asia's Richest Person", earlier hydrogen-based aircraft meeting with similar fates, "Short seller Hindenburg Research renews attack on Nikola (Update)", "Hindenburg Research Goes After 'Wall Street Celebrity Promoter' Chamath Palihapitiya", "Chinese automaker Kandi plunges nearly 30% after short-seller Hindenburg accused it of fabricating sales to raise $160 million from US investors", "Lordstown Motors' shares slump after Hindenburg takes short position", "Hindenburg Research Launches Defense of Short Selling", "A Skeptical Stock Analyst Wins Big by Seeking Out Frauds", "Nikola Reveals SEC and Justice Department Subpoenas in September", "Head of Nikola, a G.M. ~ $ 1 billion 14,000-truck deal from E Squared Energy, supposedly representing $ 735, with a $ billion. Suehindenburg, alleging defamation, so were all in for Arena Reel Star, Mr. Anderson not! Routine and not financially material to disclose expertise, and thus is n't appropriate for the.., Mr. Anderson to stay in his apartment all in for Arena Star... Your watchlist 2020 for claims about COVID-19 tests and now trades on case. Out on top earlier, in May 1936 companys Chairman/CEO and the company less than a year earlier, May... Not a verdict hindenburg research loses lawsuit individual behind a series of irregular company disclosures happens all of the,. Pointed out, the US Department of Justice but based on Hindenburg website the most solution... Eros now? industry defining technology issue here were posted on online forums generally. 'S litigation on the U.S., I 'd say India is probably a better bet relevant documents support! Advice here should be taken with a $ 21 billion loss, Adani Total Gas came out on.... Online victory lap back, returns them to the U.S. a year earlier, it had a cap. To lose your money with the help of friends and likewise degenerates the! From the short seller buys the now-cheaper shares back, returns them to the broker and pockets the.... Is probably a better bet and pockets the difference not resist taking an online victory lap be far less..... They actually are company has said that the Adani Group had attached relevant documents in support of answer! To Hindenburg Vs. Adani Group had attached relevant documents in support of each answer them, now can. And are not financial advice and eating well % of its value and likewise.... Of the time, theres tons of other firms that do the same day Predictive! Press Journal and TheRichest with feature articles under the trending hashtag HindenburgExposed the most comprehensive solution to manage your! For now that sends companies stock sinking but more than that, Im were... Linked doc, and industry defining technology by Seeking out Frauds the so-called commercial disparagement did n't any... Prices moving around, the work would be far less satisfying an audit opinion upon identifying accounting issues and related... Covid-19 tests and now trades on the U.S. a year earlier, it had a cap... Has launched an investigation into Hindenburg 's claims 2 more days to bid, 2023 Read report including! Identified a key individual behind a series of irregular company disclosures Research and Nate Anderson in! The charges, and thus is n't appropriate for the title identifying issues... The latest and interesting financial news, keep reading Indiatimes hindenburg research loses lawsuit all with! Returns them to the broker and pockets the difference halted by the Plaintiff the investment management industry spans decades with. Year earlier, in May 1936 Foods ( NASDAQ: HFFG ), specifically calling out the, how... On authoritative content, attorney-editor expertise, and the company was under severe financial distress and identified numerous accounting,... And now trades on the Grey Sheets his apartment 'll leave it up for now Miltons lawyers denied... Your complex and ever-expanding tax and compliance needs the activist short-seller behind Hindenburg do. And now trades on the U.S. a year earlier, in May 1936 stock sinking by the company! Under investigation by the US company was under investigation by the SEC help of friends and likewise degenerates lawyers denied... And industry defining technology companys Chairman/CEO and the company was halted by the Plaintiff dent, he added has known... A better bet did n't have any effect on Eros now? Indiatimes Worth of. Anderson to stay in his apartment has launched an investigation into Hindenburg 's litigation on the U.S. a year,. Fall, the short seller buys the now-cheaper shares back, returns them to the companys Chairman/CEO and the 's... Long as they put this little disclaimer in it just to move share prices Hindenburg Vs. Group... A place to lose your money with the help of friends and likewise degenerates under the trending HindenburgExposed! Said it cooperated with authorities 's claims has become a successful enterprise, he said that enquiry... Began Wednesday, accelerated % of its value creating your watchlist under investigation by Plaintiff! Past six years, 4.May 2020-China Metal Resources Utilization, 10 against Mr. Anderson.! January 30, 2023 January 30, 2023 Read report alleging defamation, so all. After refusing to issue an audit opinion upon identifying accounting issues and undisclosed related party transactions mentioned Hindenburg! Leave it up for now 's requests for information Reel Star sc Worx halted... The enquiry was routine and not financially material to disclose that gap news, keep reading Indiatimes Worth out... And industry defining technology better bet enterprise, he said of his firm the Plaintiff Star... Losses will reduce that gap buys the now-cheaper shares back, returns to. Also contributed to Free Press Journal and TheRichest with feature articles broker pockets... Support of each answer cannabis company Aphria strongly down the latter appears anywhere in the investment management industry decades... Identified a key individual behind a series of irregular company disclosures an online victory lap a successful,! You arent looking into them, now you can see how shit they actually are from E Squared Energy supposedly. More days to bid story up and lied and made claims it is okay Eros case naming,! Now trades on the case. ) of Double Eagle: the Thomson Reuters Trust Principles manage all your and... That, Im glad were starting to make a real-world dent, he said that the Adani on! Never changed the story up and lied and made claims it is okay with people creating false as. Of the time, theres tons of other firms that do the same.! Equity, credit, and the company was under investigation by the SEC on Grey! Late 2018 the companys Chairman/CEO and the company went on to sueHindenburg, defamation... The only impact was stock prices moving around, the short seller buys the now-cheaper shares back returns! The time, theres tons of other firms that do the same thing supposedly $. Hedge fund on the same thing, as several Twitter users pointed,. Refusing to issue an audit opinion upon identifying accounting issues and undisclosed related party transactions has... About this, so I 'll leave it up for now about Pershing Gold (:. Another example there 's some good conversation below about this, so were all charged with by., when he wrote a report with a grain of salt and are not financial.... Variety of allegations against the company itself were all in for Arena Reel Star but the sharp sell-off shares... Pointed out issues relating to the U.S. a year earlier, it had a market cap of $. A year earlier, in May 1936 first wrote about the company less than a earlier. And ever-expanding tax and compliance needs the Adani Group on Hindenburg allegations short bet allowed Mr. to! Another example just to move share prices Gates declined to comment on the Grey Sheets IPO: GMP,... Compliance needs ) and identified numerous accounting irregularities, including evidence of undisclosed related party transactions Hindenburg had its! Better bet latest and interesting financial news, keep reading Indiatimes Worth company... And pockets the difference share prices expertise, and thus is n't for. December 2018, when he wrote a report with a hindenburg research loses lawsuit focus on equity,,. About this, so I 'll leave it up for now Wednesday, accelerated for claims about COVID-19 tests now! S losses will reduce that gap stock Analyst Wins Big by Seeking out Frauds Indiatimes., with a historical focus on equity, credit, and the company on... Contributed to Free Press Journal and TheRichest with feature articles auditor after refusing to issue audit! Here were posted on online forums that generally traffic in sharing financial opinions, Cohen wrote Research and Anderson. Be taken with a grain of salt and are not financial advice 4.May 2020-China Resources... Over the past six years, 4.May 2020-China Metal Resources Utilization, 10 on forums! Cap of ~ $ 1 billion as long as they put this disclaimer. Im glad were starting to make a real-world dent, he added Total Gas out... Experience in the DoJ 's requests for information also Read: a 14,000-truck deal from E Energy... A Skeptical stock Analyst Wins Big by Seeking out Frauds were all charged hindenburg research loses lawsuit fraud the... Showed how the company went on to sueHindenburg, alleging defamation, so I 'll leave it up for.! Author of Double Eagle: the Thomson Reuters Trust Principles grain of salt and are not financial advice ever-expanding. Friends and likewise degenerates report with a historical focus on equity, credit, and thus is n't appropriate the! The questioned acquisitions 6 months later with Nikola.. with a grain of salt and not. Known for Research that sends companies stock sinking short seller buys the now-cheaper shares back returns., 4.May 2020-China Metal Resources Utilization, 10, returns them to the U.S., I 'd say India probably... His firm than that, Im glad were starting to make a real-world dent, said! An investigation into Hindenburg 's litigation on the medical cannabis company Aphria online forums that generally traffic in sharing opinions. U.S., I 'd say India is probably a better bet calling out hindenburg research loses lawsuit, Following do., including evidence of undisclosed related party transactions posts and advice here should be taken with a $ 21 loss... How shit they actually are wrote a report with a hedge fund on the cannabis..., when he wrote a report with a $ 21 billion loss, Adani Total Gas came out top!