January 24, 2023: This is when Hindenburg Research released a detailed report alleging accounting fraud, stock manipulation and money laundering by Gautam Adani and Adani Group.
Hindenburg vs.Adani Group
It’s easy Hindenburg report upsets Adani groupThis is evidenced by the crash of the group companies’ stocks which has had a significant impact on Gautam Adani’s own net worth.
As the Hindenburg vs. Adani Group story continues, the question that comes to mind is whether this is the first time Hindenburg Research has made such allegations against a company.
The answer is no. Prior to Adani Group, it was founded by Nathan Anderson. Hindenburg Research has a track record of pointing out fraud at 17 companies For the past 6 years.
What does the Hindenburg Study do?
For those who are inexperienced, Hindenburg Research specializes in forensic financial investigationsTheir experience in the investment management industry spans decades and has historically focused on equities, credit and derivatives analysis.
Research firms claim to use fundamental analysis to help them make investment decisions, but the most influential findings come from uncovering hard-to-find information from unusual sources. thinking about. In particular, we often look for situations where companies may have any combination of the following:
– Villains in management or primary service provider roles
・Undisclosed related party transactions
-Illegal/unethical business or financial reporting practices
– Undisclosed regulatory, product or financial matters
Also Read: Hindenburg effect: Mukesh Ambani replaces Gautam Adani as richest Indian and Asian on Forbes list
Let’s take a look at what Hindenburg has accomplished over the past six years.
1. September 2020 – Nicola
Hindenburg has published a report titled “Nikola: How a sea of lies turns into a partnership with America’s largest auto OEM.” It sparked a huge number of allegations of lies and deceptions by Nicola in the years leading up to his proposed partnership with General Motors, with the help of whistleblowers and former employees.
Among dozens of issues, Hindenberg points out that Nicola’s “In Motion” promo video for Nicola Wang Semi is nothing more than a truck rolling down the hills of the Utah desert. bottom. claim that the company later admittedAs noted on the Hindenburg website, Nikola’s founder and executive chairman Trevor Milton immediately resigned from the company.
The story reportedly caught the attention of mainstream international media, with coverage by The Wall Street Journal, Financial Times, CNN, Barron’s, CNBC, and others. Both the SEC and DOJ are reportedly investigating the company following the report.
2. June 2020 – WINS Finance
Hindenburg wrote about WINS Finance, noting that its Chinese subsidiary was subject to a RMB 350 million asset freeze, which was not disclosed to US investors. Hindenburg also pointed out that his WINS parent company, which owns his 67.7% stake in WINS, had already been declared insolvent in China without disclosing it to U.S. investors.
About four months later in October 2020, WINS delisted from Nasdaq Specifically, due to an undisclosed asset freeze identified by Hindenburg.
3. June 2020 – Genius Brand
Hindenberg wrote that Genius Brands was trading at about $6.86 a share at the time, but could soon drop to $1.50 amid extreme euphoria and dilution in retail. there is By the end of July, less than two months later, the stock had fallen nearly 80%, with him trading at $1.50.
Genius Brands was able to convince a federal judge in California to dismiss a securities fraud lawsuit. by an investor group alleging the media company used misleading statements to sell its shares.
4.May 2020-Chinese Metal Resources Utilization
Hindenburg writes about the exploitation of China’s metal resources:zombie company” 100% downsideHindenburg shows how the company is in serious financial trouble and has identified numerous accounting frauds, including evidence of undisclosed related-party transactions.
A few months after the Hindenburg report, Ernst and Young resigned as auditors after refusing to issue an audit opinion upon identifying accounting issues and undisclosed related-party transactions. Shares have fallen more than 90%.
5. April 2020 – SC Worx
Writing for SC Worx (NASDAQ:WORX), Hindenburg said the company’s announced COVID-19 testing contract looked “completely bogus.” Hindenberg also questioned the track record of the company’s COVID-19 testing partner, who claims it was run by a convicted felon CEO and a convicted rapist. SC Worx has been suspended by the SEC On the same day as Predictive Technologies in late April,As described on the Hindenburg website.
6. March 2020 – Forecasting Technology Group
Hindenburg wrote for the Predictive Technology Group (OTC:PRED), questioning the company’s COVID-19-related press release.of Company has been suspended by the SEC Currently trading gray sheet due to “COVID-19 testing complaints” in late April 2020. When Hindenburg first wrote about the company less than a year ago, it had a market capitalization of ~$1 billion. Since then it has lost about 90% of its value.
7. March 2020 – HF Foods
Hindenburg wrote about HF Foods (NASDAQ:HFFG), specifically Improper Allocation of Company Shareholders’ Equity and Large Undisclosed Related Party Transactionsincluding a $509 million merger.
In May 2020, HFFG posted a significant goodwill impairment of $338.2 million, resulting in a quarterly loss of $339.9 million. At the time of the reported impairments and losses, the company had a market capitalization of just $400 million.
8. October 2019 – Smile Direct Club
Hindenburg wrote an article warning SmileDirectClub customers. questionable business practices Investors may also face negative publicity about the company as a result of customer unpopularity, lawsuits, various regulatory investigations, and allegations that they practice dentistry without proper licenses. I warn you that it is possible.
The Hindenburg report was followed up by published articles by The Boston Globe, The New York Times and NBC News. (complete with hidden camera footage and customer testimony) supported the Hindenburg red flags first raised in the Hindenburg report.
9. September 2019 – Bloom Energy
Hindenburg has written an article detailing why he believes Bloom Energy (NASDAQ:BE) has billions of dollars in undisclosed off-balance sheet debt.
Mr. Hindenburg specifically pointed out a problem with the company’s accounting for service contracts.
Nearly five months after the Hindenburg article, Bloom announced a major financial fix nearly four years after going public, due to a quarterly “significant” accounting error related to the service contract involved. Did.Forbes announced Company corresponding exposure.
10. December 2018 – Yangtze River Port and Logistics
Hindenburg wrote about Yangtze Port Logistics (NASDAQ:YRIV), a China-based logistics company with a $2 billion market cap. Hindenburg’s investigation found, among other major anomalies, that the company’s key assets appeared to be non-existent.
As the company continued to sue Hindenburg for defamation, Hindenburg doubled down on its efforts by submitting more findings..
Multiple independent news outlets and law firms corroborated their reports.of The company was delisted from the Nasdaq After 6 months, it has lost over 98% of its market cap and is now showing a “beware” warning on its OTC ticker. The lawsuit against Hindenburg was subsequently dismissed.
11. December 2018 – Liberty Health Sciences
Hindenburg wrote about the informal acquisition and transaction between Liberty Health Sciences (CSE:LHS) and Aphria.In response to the article, the four Liberty directors resignedalong with its CEO and CFO.
In 2020, Liberty Health Sciences announced that it had agreed to settle a class action lawsuit. The settlement was reportedly worth $1.8 million.
12. December 2018 – Afria
Hindenburg wrote an article identifying that Aphria (NYSE:APHA) has created yet another series. Highly erratic and overvalued takeovers with insider self-dealing featuresAgain, the insider later admitted to having an unlisted stake in the company’s acquisition, leading to the resignation of the company’s chairman/CEO, co-founder, and management/board restructuring. The company wrote down the value of the acquisition in question six months later.
Hindenburg had previously written an article showing that $2 billion market cap cannabis company Aphria (NYSE:APHA) had made a highly irregular and overvalued acquisition. The company later admitted that an insider had an undisclosed personal interest in his acquisition target, Nuuvera.
13. December 2017 – Riot Blockchain
Hindenburg has written a series of articles about a dubious acquisition of Riot Blockchain (NASDAQ:RIOT) that appears designed to benefit insiders. In late February 2018, CNBC published a public article corroborating and explaining Hindenburg’s findings. After the Riot-CEO indicted for fraud by SECThe former CEO is now reportedly under an active criminal investigation.As described on the Hindenburg website.
14. December 2017 – PolarityTE
Hindenburg wrote about PolarityTE’s (NASDAQ:PTE) loose origin story and irregular financial disclosures.of The company’s CFO later resigned and was indicted by the SEC Arrested in 2018 on suspicion of participating in the Pump & Dump Program.
15. November 2017 – Opko Health
Hindenburg wrote about $3 billion market cap Opko Health’s (NASDAQ:OPK) ties to nefarious criminals and a list of product glitches and irregular disclosures. In late 2018, the company Chairman/CEO and company itself all charged with fraud by the SEC. They later settled the charges.
16. November 2017 – Pershing Gold
Hindenburg wrote an article on Pershing Gold (NASDAQ:PGLC) to identify the key players behind a series of irregular corporate disclosures.The individual was later indicted by the SEC (Securities and Exchange Commission) as the group’s “principal strategist” Allegedly ran multiple pump-and-dump schemes.
17. 2016- RD Legal
Hindenburg founder Nate Anderson has filed a whistleblower report with the SEC. RD Legal is a hedge fund later indicted by a commission for making materially false reports to investors. RD Regal then lost in courtleading to fines and industry suspensions for its founders.
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