Adani group plans to file lawsuit in US against Hindenburg Research reports

New Delhi: Standing by its report, Hindenburg Research on Thursday threw down the gauntlet to Adani Group and challenged the business conglomerate to file lawsuit in the US from where the short seller operates.
“Regarding the company’s threats of legal action, to be clear, we would welcome it. We fully stand by our report and believe any legal action taken against us would be meritless,” Hindenburg said in its statement posted on its Twitter handle.
“If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” the US firm further said.
Hindenburg Research’s response came hours after Adani group’s statement saying it was evaluating the relevant provisions under US and Indian laws for remedial and punitive action against the American firm.
“We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises. We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jatin Jalundhwala, Group Head – Legal, Adani had said in a statement earlier in the day.
Billionaire Gautam Adani-led Adani Group had on Wednesday slammed the report published by Hindenburg Research which claimed that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the course of decades.
The report sent Adani Group stocks tumbling on the BSE.
In its report, Hindenburg Research claimed that its findings are based on a two-year investigation which involved speaking with dozens of individuals, including former senior executives of the Adani Group, reviewing thousands of documents, and conducting diligence site visits in almost half a dozen countries.
“Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades,” said Hindenburg Research in its January 24 report.
It further said, “Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period.”
Adani Group has termed the report as a malicious combination of selective misinformation.
“The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts,” it has said.
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