Short Seller Scandal: Hindenburg and Hedge Fund Connections Unveiled

Nate Anderson, the activist short-seller behind Hindenburg, is implicated in a scandal over alleged ties to hedge fund Anson. Court documents suggest Anderson collaborated with Anson on reports targeting companies, potentially leading to securities fraud charges. The fallout comes as Hindenburg closes amid broader investigations.

Nate Anderson, the activist short-seller known for his work at Hindenburg Research, is at the center of controversy due to alleged ties with the hedge fund Anson. Court documents suggest Anderson collaborated with Anson on bearish reports without disclosing this connection, which could result in securities fraud charges from the SEC.

According to revelations from the Ontario Superior Court, Anson's head, Moez Kassam, admitted that his firm exchanged research with various sources, including Anderson. Emails suggest Anderson was instructed by Anson on report content, raising concerns about his editorial independence.

The case continues as Hindenburg shuts down after gaining global attention for its reports on prominent figures, including Gautam Adani. Anderson, who announced the closure, cited personal reasons, as investigations by the US Justice Department and SEC loom over him and Anson Funds.

(With inputs from agencies.)