Investing.com-- Hindenburg Research, the U.S.-based short-selling firm known for its scathing reports on major companies, announced its decision to shut down operations amid escalating legal pressures, its founder said on Wednesday.
Hindenburg's founder, Nathan Anderson, stated in a website post the reason for the shutdown was the intense nature of his work.
"It has also been rather intense, and at times, all-encompassing. I often wake up from my dreams because I’ve thought of a new investigative thread to pull on in my sleep, or an edit that clarifies a point I didn’t realize I was troubled by during the day," he said in a note.
The firm has been embroiled in high-profile lawsuits, particularly from India’s Adani Group, after releasing a report in January 2023 accusing the conglomerate of stock manipulation and accounting fraud.
The report, which alleged extensive wrongdoing by Adani Group, triggered a massive sell-off in Adani's listed entities, wiping out more than $150 billion in market capitalization at its peak. Although Adani strongly denied the allegations and regained some investor confidence with a partial recovery of its shares, the controversy intensified scrutiny of both the company and Hindenburg's practices.
Hindenburg gained prominence for exposing alleged fraud in high-profile companies, including Nikola Corp (NASDAQ:NKLA) and Block Inc (NYSE:SQ) However, its aggressive short-selling tactics drew criticism from companies targeted in its reports.