Hindenburg Research to shut shop: Nathan Anderson, the founder of US-based short seller Hindenburg Research, announced on Wednesday that the firm would disband. The firm is known for reporting heavy short-selling by investors and investigations by authorities, wiping billions from companies’ market values, including India’s Adani Group and US-based Nikola.
Adani Group
Since 2023, Hindenburg Research has repeatedly targeted Adani Group, wiping off a chunk of the company’s market valuation. A report against the Adani Group, titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’, came out in January 2023. The report alleged that the Gautam Adani-led conglomerate was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.” Following the Hindenburg allegations, Adani Group has denied all charges.
Nikola Corporation
In 2020, Hindenburg Research alleged that Nikola, an electric truck maker, had cheated investors about its technological innovations. Following the allegations, Trevor Milton, Nikola’s founder, voluntarily resigned, and the shares dropped by 40 per cent.
Block Inc
In 2023, Hindenburg Research accused short positions in Block Inc, a company led by Twitter co-founder Jack Dorsey, of overstating its user numbers and understating its customer acquisition costs. Block Inc retaliated, saying it was a “factually inaccurate and misleading report” to deceive and confuse investors.
Icahn Enterprises LP case
Hindenburg Research 2023 accused Icahn Enterprises LP of wrongly reporting its finances. According to the short-seller, Icahn Enterprises has been involved in Ponzi structures to pay dividends.
Clover Health
In 2021, Hindenburg accused Clover Health of not informing investors about the investigation by the Department of Justice. It claimed that Chamath Palihapitiya of misled investors about critical aspects of Clover’s business.
Supermicro
In August 2024, Hindenburg accused Supermicro of accounting failures. The next day, Supermicro said it would delay the filing of the annual report, causing its stock to collapse by more than 25 per cent.
Along with listed companies, the chief of the Indian market regulator also invited the wrath of the US short seller. In 2024, Hindenburg Research alleged that the Indian market regulator did not act on the January 2023 Adani report because Sebi chairperson Madhabi Puri Buch and her husband Dhaval Buch had investments in offshore funds linked to the Adani group. Madhabi Puri Buch and Dhaval Buch denied these allegations, calling them ‘baseless’ and an attempted ‘character assassination’.
