Gautam Adani’s company has been sued for fraud by a US company
A US-based short-seller that published reports accusing top financial entities in India and abroad of financial irregularities and fraud is to be shut down.
Hindenburg Research founder Nate Anderson announced Wednesday that he is winding down the company eight years after starting it.
The company 2023 made headlines in India After publishing explosive reports About billionaire Gautam Adani’s Congress, it has led to political rows and huge losses for the company.
Mr. Anderson did not share a specific reason for the decision, but expressed his desire to spend more time with friends and family in the future.
In the year The Hindenburg Research, launched in 2017, gained notoriety for exposing alleged financial irregularities in some of the biggest names in business. The company’s reports have caused businesses in India and abroad to lose billions of dollars in market value.
“Approximately 100 individuals, including billionaires and oligarchs, have been charged civilly or criminally as part of our operations by regulators. We have shaken some empires that we felt needed shaking,” Mr. Anderson wrote. press release In which he announced his decision.
In the year In 2020, the company sued electric truck maker Nicola Corporation for misleading investors about its technologies. In the year In 2022, the company’s founder, Trayvon Milton, was found guilty of lying and defrauding investors.
In the year In 2023, the Adani Group published a report accusing it of decades of “fictitious stock manipulation and accounting fraud”. Mr Adani and his organization called the allegations “malicious” and an “attack on India”.
In the days following the report, Adani Group Around 108 billion dollars lost from their market value But since then, the company’s financial health has recovered.
Last year, Madhabi Puri Buch of Hindenburg Research – the chief executive of the Securities and Exchange Board of India (SEBI) – Regarding the connection with the offshore funds used by the Adani group. Neither Ms. Buch nor the hunters did anything wrong.
The company’s allegations have sparked an angry political row in the country, with India’s main opposition Congress party accusing Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) of failing to act against the Adani group.
Mr Adani, one of Asia’s richest men, is known to be close to Mr Modi and has faced accusations from opposition politicians that he took advantage of his political connections.
In a statement, Mr. Anderson expressed interest in opening the Hindenburg Research Methodology in the future.
“In the next six months, I plan to work on a series of materials and videos about all aspects of our model and how we perform our tests,” he wrote.
Short sellers like Hindenburg bet on stocks of companies they believe have been involved in fraud or other financial wrongdoing in their investigations. The process involves borrowing a stock, selling it immediately, and buying it back when the value drops to the pocket.
