Hindenburg Nate Anderson is facing scrutiny for sharing a report with a hedge fund
Hindenburg Nate Anderson : an activist short-seller who recently announced the closure of his nearly eight-year-old research firm Hindenburg, is facing scrutiny for alleged connections with hedge funds in the creation of reports targeting companies, according to a Canadian news outlet citing court documents filed in Ontario.
In a collection of documents submitted to the Ontario Superior Court of Justice as part of a defamation lawsuit, Moez Kassam, the head of Canada’s Anson hedge fund, stated that his firm had shared research with various sources, including Nate Anderson of Hindenburg.
The Market Frauds portal reported that court documents suggested Hindenburg collaborated with Anson in the preparation of a report. Failing to disclose involvement in the creation of negative reports could potentially lead to charges of securities fraud by the US Securities and Exchange Commission (SEC).
Short sellers typically borrow a security, sell it on the market, and anticipate repurchasing it at a lower price after releasing a critical report that drives down the company’s stock value. The involvement of hedge funds is concerning as they may also make similar bets, further pressuring stock prices downward.
Attempts to reach Anson and Kassam were unsuccessful, and an email sent to Anderson went unanswered. Allegedly, email exchanges between Anderson and Anson Funds indicate that Anderson was working for Anson and published reports based on their instructions, without any editorial control. The website claims to have evidence of Anderson being directed on what to include in the reports, including price targets.
Market Frauds also shared screenshots of email exchanges between Hindenburg and Anson, which they claim to have obtained from documents filed in the Ontario court, to support their allegations.
There are multiple counts of securities fraud for both Anson Funds and Nate Anderson, and we have only reviewed 5% of the evidence at the time of writing. Based on our preliminary findings, it is highly likely that Nate Anderson will face charges of securities fraud in 2025 once the full exchange between Hindenburg and Anson is presented to the SEC.
When Hindenburg first emerged, they stated that they receive hundreds of leads each year from various sources, including industry experts, whistleblowers, and investors. Each lead undergoes a rigorous vetting process, and Hindenburg maintains complete editorial independence over their work.
In 2020, Hindenburg Research released a report on Facedrive, a Canadian company that went public through a reverse merger as an eco-friendly ride-sharing service. The report criticized Facedrive for being overvalued and for making lavish payments to promoters. Court documents suggest that Anson had communication with Anderson regarding the report and had prior knowledge of its publication.
These recent filings come after a lengthy investigation by the US Justice Department and the Securities and Exchange Commission. In June, Anson Funds Management and Anson Advisors Inc agreed to pay $2.25 million to settle SEC claims related to their failure to disclose payments to outside publishers of negative research.
Last week, Anderson announced the closure of Hindenburg Research, which gained global attention in 2023 for its explosive reports on billionaire Gautam Adani’s conglomerate, leading to political controversies and significant financial losses for the company.
While Anderson did not provide a specific reason for shutting down Hindenburg, he expressed a desire to focus more on spending time with friends and family in the future.
It is worth noting that nearly 100 individuals, including billionaires and oligarchs, have faced civil or criminal charges as a result of investigations linked to Hindenburg Research.We shook some empires that we felt needed shaking,” he wrote announcing the decision.
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