Founder Nate Anderson shared this decision through an official statement, he revealed that the decision to disband was not due to any external threats, personal health, or major issues. …reports Asian Lite News
The founder of the US based short Seller-Hindenburg Research, Nate Anderson announced on Thursday that he has decided to close down the operations of his investigative firm.
Anderson shared this decision through an official statement, he revealed that the decision to disband was not due to any external threats, personal health, or major issues. Instead, it was motivated by a desire to step back from the intensity of his work and focus on other aspects of life.
He said “As I’ve shared with family, friends and our team since late last year, I have made the decision to disband Hindenburg Research”.
He also added “So, why disband now? There is not one specific thing–no particular threat, no health issue, and no big personal issue.
Reflecting on his journey, Anderson described the challenges he faced, including financial struggles, lawsuits, and self-doubt.
The firm was renowned for its high-profile investigations, including a controversial report on India’s Adani Group in 2023.
He stated “I had no money when I started–and after catching 3 lawsuits immediately out of the gate, I quickly had less than no money.”
Now Hindenburg founder Anderson plans to open-source the investigative techniques used by his firm, aiming to inspire others to carry forward the mission of uncovering fraud.
He also noted that over the next six months, he will create materials and videos to share the methodology that drove Hindenburg’s success.
While Anderson’s next chapter remains uncertain, he expressed gratitude to his team, family, and readers for their unwavering support.
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The group at the time had rubbished these claims. The Adani group has repeatedly denied all the accusations in the Hindenburg Research report.
In June this year, while addressing the Annual General Meeting (AGM) of Adani Enterprises, Group Chairman Gautam Adani said they were “faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work.”
“In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge could weaken the foundations on which your Group has been established” he told the gathering.
Firm faced intense scrutiny from India
The firm has been under the radar of Indian regulators like the Securities and Exchange Board of India (SEBI) over its report against the Adani Group, which was dismissed by the Supreme Court.
The Adani Group always vehemently rejected allegations by Hindenburg Research as “malicious, mischievous and manipulative selections of publicly available information” to arrive at “pre-determined conclusions for personal profiteering with wanton disregard for facts and the law”.
“For a discredited short-seller under the scanner for several violations of Indian securities laws, Hindenburg’s allegations are no more than red herrings thrown by a desperate entity,” according to the Group.
The SEBI last year issued a show-cause notice to Hindenburg Research, Nate Anderson and the entities of Mauritius-based foreign portfolio investor Mark Kingdon for trading violations in the scrip of Adani Enterprises Ltd leading up to Hindenburg Report.
The regulator alleged that Hindenburg and Anderson violated regulations related to fraudulent and unfair trade practices and the code of conduct for research analysts.
According to the show cause notice, SEBI alleged that prior to the report release, short-selling activity was witnessed in the futures of Adani Enterprises and after the report the share lost 59 per cent between January 24, 2023 and February 22, 2023.
The SEBI investigation revealed that K-India Opportunities Fund – Class F opened a trading account and started trading in the scrip of Adani Enterprises before the release of the report. The FPI then squared off the positions in February making a profit of $22.25 million or Rs 183.24 crore.
“I’ve decided to disband Hindenburg Research, not due to threats or issues, but to focus on life beyond work,” — Nate Anderson, Founder
Hindenburg continued to defend its January 2023 report. The Adani Group denied allegations levelled by the short seller.
The Supreme Court in July last year dismissed a review petition that was filed against its January 3 judgement in the Adani Group-Hindenburg Research case, wherein the court reposed confidence in SEBI’s regulatory powers and ruled that petitioners could not provide enough material to transfer the probe to a special investigation team.
In January last year, the Supreme Court refused to form any SIT or group of experts to conduct an investigation into the Adani-Hindenburg controversy, saying that the media and third-party reports were not conclusive proof.
“SEBI should take its investigation to its logical conclusion in accordance with law. The facts of this case do not warrant a transfer of investigation from SEBI,” held a bench presided over by then CJI, D.Y. Chandrachud.
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