Hindenburg Research shut down: Here are 7 giants the US short-seller targeted in 7 years

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Hindenburg Research, known as a corporate muckraker, is shutting down after completing its investigations. Major cases include the Adani Group and Nikola Corporation.

Hindenburg shutdown: Nate Anderson, founder of Hindenburg Research, announced on Wednesday the shut down of his US investment firm, stating they have completed all ongoing projects.

The firm’s investigations have resulted in substantial market value losses for several companies, notably including the Indian conglomerate Adani Group, which Hindenburg accused of engaging in “brazen” corporate fraud.

Their most notable achievement involved exposing electric truck manufacturer Nikola in 2020, when they revealed misrepresentations about the company’s technological capabilities.

“The plan has been to wind up after we finished the pipeline of ideas we were working on,” Anderson declared on Wednesday, adding, “And as of the last Ponzi cases we just completed and are sharing with regulators, that day is today.”

Also Read | ‘Kitne Ghazi Aaye, Kitne Ghazi…’: Adani Group CFO shares cryptic post after Hindenburg Research announces shutdown

Anderson noted that their investigations contributed to regulatory actions against approximately 100 individuals, including wealthy businesspeople and oligarchs, resulting in civil or criminal charges.

The investment group derived its name from the notorious 1937 incident involving the German Hindenburg airship, which caught fire whilst arriving in New Jersey.

According to an ET report, below are the 7 big cases where Hindenburg was involved:

Adani Group:

Throughout 2023, Hindenburg Research targeted the Adani Group with reports, causing significant financial impact on Gautam Adani’s business empire. The group’s market capitalisation experienced a dramatic decline following Hindenburg’s allegations. Subsequently, the group recovered most of its stock market losses. The Adani Group has consistently rejected all accusations made by Hindenburg. According to a Wall Street Journal article, since the Hindenburg targeted the Adani Group, the Adani Enterprises stock has given negative returns.

SEBI chief Madhabi Puri Buch

In 2024, Hindenburg levelled accusations against SEBI Chairperson Madhabi Puri Buch and her spouse Dhaval Buch, suggesting they had interests in offshore entities connected to alleged Adani money siphoning.

Nikola Corporation (2020)

The short-seller Hindenburg claimed that Nikola indulged in deceptive practices regarding its technological claims in 2020. They disputed the authenticity of Nikola’s promotional video featuring their electric truck, revealing that the vehicle was simply allowed to roll downhill rather than operating under its own power. The case culminated in 2022 when a US court found Nikola’s founder Trevor Milton guilty of lying to investors.

Also Read | Why did Hindenburg Research, short-seller behind Adani Group $150 bn rout, shut down? Read full text of founder Nate Anderson’s personal note

Icahn Enterprises LP Case (2023-2024)

Hindenburg Research raised serious concerns about Icahn Enterprises LP’s (IEP) financial reporting practices in 2023. They alleged that IEP had inflated its asset valuations and relied on a “Ponzi-like” structure to pay dividends. The allegations resulted in a significant decline in IEP’s share value, reducing Carl Icahn’s personal wealth by $2.9 billion to $14.7 billion, as reported by Forbes. IEP responded with a statement from Icahn, dismissing Hindenburg’s report as “self-serving” and claiming it was intended to profit at the expense of long-term shareholders.

Block Inc Controversy (2023)

In 2023, Hindenburg Research revealed short positions in Block Inc whilst claiming that the payment company, headed by Jack Dorsey of Twitter fame, had inflated user statistics and downplayed costs related to customer acquisition. This action directly confronted Dorsey, who established Block from his San Francisco flat in 2009, aiming to revolutionise credit card services. Block’s response included potential legal proceedings against Hindenburg Research for publishing what Block termed a “factually inaccurate and misleading report” intended to manipulate investor perception.

Twitter Investment Shift (2022)

In 2022, Hindenburg initially took a short position followed by a long one in Twitter. In May, the firm announced its short position, speculating that Elon Musk’s $44-billion private acquisition offer could face downward price revision if he withdrew from the agreement. By July, Anderson revealed a “significant long position,” effectively wagering against Musk’s interests. The Twitter acquisition ultimately concluded in October at the initially proposed valuation.

J&J Purchasing Fraud Investigation (2022)

Hindenburg Research claimed to have uncovered financial fraud at J&J Purchasing, valued at $400 million, through covert surveillance recordings obtained in 2022. The recordings documented J&J representatives promoting deceptive investment opportunities, which prompted FBI involvement and led to a tense confrontation. Subsequently, the legal counsel orchestrating the fraud provided a full admission. The incident garnered substantial media coverage and led to criminal prosecution of the participants. The Securities and Exchange Commission (SEC) initiated legal proceedings against J&J and its principal operators in 2022, effectively terminating the fraudulent operation.

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