NEW YORK: US short-seller Hindenburg Research has strongly denied being under investigation by the US Securities and Exchange Commission (SEC), dismissing recent allegations as baseless rumours.
The firm responded to claims made in a Canadian portal linking its founder, Nate Anderson, to a hedge fund involved in preparing bearish reports targeting companies.
“Hindenburg is not under investigation by the SEC, to our knowledge, and any suggestion to the contrary is false,” the company said.
The allegations surfaced after a defamation lawsuit in Ontario cited purported links between Anderson and Canada’s Anson hedge fund. The portal claimed that Anson’s head, Moez Kassam, admitted to sharing research with Hindenburg.
According to the report, emails allegedly revealed that Anderson worked closely with Anson while preparing reports, including setting price targets and content for publication. The claims suggest this undisclosed collaboration could amount to securities fraud under US law.
Hindenburg, however, called the allegations “irresponsible,” asserting they were based on “an anonymous Tongan blog rife with factual errors, wild theorising, and a complete lack of understanding of US law.”
The firm reiterated its independence, stating, “Throughout our history, we independently vet any lead and always have full editorial control.”
The controversy reignites scrutiny of short-selling practices, with hedge funds often accused of placing parallel bets to amplify stock declines after critical reports. Market Frauds, the portal making the claims, also released screenshots of alleged e-mail exchanges between Hindenburg and Anson.
While the SEC has previously fined Anson Funds $2.25 million for failing to disclose payments for bearish research, Hindenburg emphasised that its operations remain compliant with US regulations.
Aggressive short-seller
“It is almost a certainty that when the whole exchange reaches the SEC, Nate Anderson will be charged with securities fraud in 2025,” Market Frauds alleged, though Hindenburg categorically rejected such claims.
Hindenburg’s reputation as an aggressive short-seller has drawn attention before, particularly with its high-profile reports on companies like Facedrive, which it criticised as overvalued and mismanaged.
Last week, Anderson announced the shutting down of Hindenburg Research, which made headlines globally in 2023 after publishing explosive reports about billionaire Gautam Adani’s conglomerate, sparking political rows and major losses for the company.
He didn’t share a specific reason for his decision but expressed a desire to spend more time with friends and family in the future.
“Nearly 100 individuals have been charged civilly or criminally by regulators at least in part through our work, including billionaires and c. We shook some empires that we felt needed shaking,” he wrote announcing the decision.
