In response to Adani Group’s statement on taking legal action against them, Hindenburg Research stated on Thursday that they fully stand by their report on the Indian conglomerate and believe any legal action taken against them would be meritless.
Hindenburg Research, the US-based investment firm that recently released a report on the Adani Group, has stated that it fully stands by its findings and is unafraid of any potential legal action taken against them. The company stated that they believe any legal action would be “meritless”.
In response to the potential legal action from Adani Group, Hindenburg stated that it is prepared to defend its report on the Indian conglomerate and will request relevant documents during the legal discovery process if a lawsuit is filed against them in the US.
“In the 36 hours since we released out report, Adani hasn’t addressed a single substantive issue we raised. At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent. Thus far, Adani has answered none of these questions,” Hindenburg Research said.
Also read: Adani Group lost ₹96,672 crore after Hindenburg Research’s stock manipulation expose
Instead, as expected, Adani has resorted to bluster and threats. In a statement to media today, Adani referred to our 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as “unresearched” and said it is “evaluating the relevant provisions under U.S. and Indian laws for remedial and punitive action” against us.
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.
“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,” it added.
A recent report from Hindenburg Research has accused the Adani Group of utilizing undisclosed transactions with related parties and manipulating earnings in order to present a false image of financial stability within its listed business units.
According to the report, the Adani Group, headed by billionaire Gautam Adani, has engaged in a large-scale and overt manipulation of stock prices and financial reporting. The research firm claims that the company is running the “biggest con in corporate history.”
According to Reuters, the Adani Group, led by the world’s third-richest person Gautam Adani, is in a financially unstable position due to the “substantial debt” of key listed companies within the group.
The Adani Group released a statement in response to Hindenburg Research’s report that alleged the company is involved in a “massive and ‘brazen stock manipulation’ and ‘accounting fraud scheme'”. The statement, released on January 25, expresses the company’s shock that the report was published without being contacted by the company and denies the allegations as a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest court.”