Infamous short-selling investment research firm Hindenburg Research has vowed to release another ‘big’ report exposing alleged corporate fraud and malfeasance.
‘New report soon—another big one,’ the New York-based Hindenburg wrote in a tweet on Wednesday, minutes after US markets closed. The firm offered no further details, and did not immediately respond to an inquiry from DailyMail.com.
Far from being an unbiased watchdog, Hindenburg profits from taking large sort positions in the companies it issues reports on, betting that their shares will plunge as markets digest the research.
However, Hindenburg’s research has previously led to 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, in a January report alleging his conglomerate Adani Group ‘has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.’
Founded in 2017 by Nathan Anderson (above), Hindenburg Research is a forensic financial research firm that seeks out corporate fraud, corruption or malfeasance
Adani Group vehemently denied the claims and expressed shock at the allegations, which wiped billions off the company’s market capitalization and its founder’s net worth.
Since the start of the year, Adani Group shares are down more than 50 percent, and Gautam Adani has lost an estimated $62 billion in net worth, dropping from the third-richest person in the world to No. 21 on the Bloomberg Billionaires Index.
However, Hindenburg’s report accusing Adani Group of stock manipulation and improper use of tax havens, and flagging ‘substantial’ debt levels, has not been proven in court.
Adani Group slammed the allegations as ‘a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India´s highest courts.’
Earlier this month, Adani Group sought to reassure investors by announcing that Gautam Adani and his family have prepaid all borrowings backed by shares in the company.
Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm that seeks out corporate fraud, corruption or malfeasance.
It is named after the high-profile 1937 tragedy of the Hindenburg airship, which ignited as it flew into New Jersey, an incident the company describes as the ‘epitome of a totally man-made, totally avoidable disaster.’
Hindenburg says it looks for similar ‘man-made disasters’ in financial markets ‘before they lure in more unsuspecting victims.’
Hindenburg’s latest target was Indian billionaire Gautam Adani (above), in a January report alleging his conglomerate Adani Group ‘has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades’
Since the start of the year, Adani Group shares are down more than 50 percent, and Gautam Adani has lost an estimated $62 billion in net worth
The firm typically spends months on its investigations, poring over financial disclosures and talking 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 it accused Nikola’s founder of making misleading claims to seal partnerships with top auto companies hungry to catch up to Tesla.
Among its allegations, Hindenburg accused Nikola of staging a video showing one of its trucks cruising on a road, intended to calm investors worried about product timelines.
Hindenburg said the video actually depicted the truck rolling down a hill after it was towed to the top.
Nikola and its founder, Trevor Milton, soon received grand jury subpoenas from state and federal prosecutors in Manhattan.
The Securities and Exchange Commission also issued subpoenas to Nikola’s directors soon after the report.
Nikola in late 2021 agreed to pay $125 million to settle SEC charges that it defrauded investors by misleading them about its products, technical advancements, and commercial prospects.
Hindenburg’s most famous report came in 2020, when it accused Nikola founder Trevor Milton (center) of making misleading claims to seal partnerships with top auto companies
Milton was convicted in October of deceiving investors with exaggerated claims about his company’s progress in producing zero-emission 18-wheel trucks fueled by electricity or hydrogen.
In December, Milton requested that the judge toss his conviction, saying a juror who decided the case concealed her bias against the ultrawealthy.
Milton’s sentencing has been delayed until June 21 as the court considers his claims and opposing arguments from prosecutors.
In the meantime, he remains free on a $100 million bond.