Nate Anderson, the activist short-seller who recently announced the closure of his nearly eight-year-old research firm Hindenburg Research, is facing scrutiny for alleged links to hedge funds in preparing reports targeting companies. A Canadian portal, citing court documents filed in Ontario, reported these allegations.
Documents filed in a defamation lawsuit at the Ontario Superior Court of Justice reveal that Moez Kassam, head of Canada’s Anson hedge fund, admitted his firm shared research with various sources, including Anderson. According to the Market Frauds portal, these court filings allegedly show that Hindenburg collaborated with Anson while preparing a report. If true, this lack of disclosure could lead to securities fraud charges by the U.S. Securities and Exchange Commission (SEC).
Short sellers typically borrow securities, sell them, and later repurchase them at a lower price after releasing reports that negatively affect a company’s stock. However, hedge funds’ involvement raises concerns as they can simultaneously place parallel bets, intensifying the downward pressure on stock prices.
Emails sent to both Kassam and Anderson remained unanswered. Market Frauds claims to have accessed documents and emails from the Ontario court showing Anderson was guided by Anson in crafting reports, including setting price targets and determining content. The website alleges that Anderson lacked editorial independence, instead publishing what Anson directed. Screenshots of email interactions were also shared to support these claims.
The portal stated, “There are multiple counts of securities fraud against both Anson Funds and Nate Anderson. From what we’ve reviewed so far, it’s almost certain the SEC will charge Anderson with securities fraud in 2025.”
Hindenburg has previously maintained that it receives leads from diverse sources, such as industry experts, whistleblowers, and investors, and that it rigorously vets these while maintaining editorial independence. In 2020, Hindenburg published a report on Facedrive, a Canadian company, accusing it of overvaluation and extravagant payments to promoters. Anson allegedly communicated with Anderson about this report and was aware of its publication timeline, as revealed by court documents.
The allegations come amidst a separate investigation by the U.S. Justice Department and the SEC. In June, Anson Funds Management and Anson Advisors agreed to pay $2.25 million to settle SEC claims over undisclosed payments to publishers of bearish research, without admitting or denying wrongdoing.
Last week, Anderson announced the closure of Hindenburg Research, which gained global attention in 2023 with a report on billionaire Gautam Adani’s conglomerate, leading to significant losses for the company and political controversies. Anderson did not provide specific reasons for the decision but expressed a desire to spend more time with family and friends.
As quoted by PTI, Anderson wrote in his announcement, “Nearly 100 individuals, including billionaires and oligarchs, have been charged civilly or criminally through our work. We shook empires that we felt needed shaking.”
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