Hindenburg Research, known for Adani probe, announces shutdown | The Express Tribune

Hindenburg Research, the US-based short-selling firm known for its explosive reports on financial misconduct, is shutting down after nearly eight years in operation. Nate Anderson, the firm’s founder, announced on Wednesday that the company would disband, citing personal reasons.

While Anderson did not go into detail about the cause, he stated that he wanted to focus more on spending time with family and friends.

Founded in 2017, Hindenburg Research gained global notoriety for its investigative work into alleged financial irregularities within major companies. One of its most significant reports came in 2023 when the firm accused Indian billionaire Gautam Adani’s conglomerate of decades of stock manipulation and accounting fraud.

The accusations led to a dramatic market response, wiping out $108 billion from the Adani Group’s value. However, the company has since rebounded, recovering much of its market losses.

Anderson reflected on the impact of Hindenburg Research’s work in his announcement. “Nearly 100 individuals have been charged civilly or criminally by regulators, including billionaires and oligarchs,” he wrote. The firm’s reports had far-reaching consequences, forcing companies to address financial wrongdoings, sometimes resulting in legal action and financial penalties.

Hindenburg’s investigations had a significant impact in India, with the Adani report stirring political controversy. The allegations led to accusations that Prime Minister Narendra Modi’s government failed to take action against the Adani Group. Adani and his company vehemently denied the allegations, calling them “malicious” and an “attack on India.”

In addition to its work on Adani, Hindenburg Research had previously targeted other high-profile firms. In 2020, the company accused electric truck manufacturer Nikola Corp of misleading investors about its technology, leading to fraud convictions for Nikola’s founder, Trevor Milton.

Despite the political and financial firestorms caused by its reports, Hindenburg’s closure is primarily the result of Anderson’s decision to change his personal focus. “There is not one specific thing—no particular threat, no health issue, and no big personal issue,” Anderson explained. Reflecting on his career, he acknowledged the personal sacrifices made in his quest for success, explaining that the intensity and focus of running the firm had caused him to miss out on life outside of work.

Anderson plans to open-source Hindenburg’s investigative methodologies over the next six months, sharing materials and videos that outline the firm’s approach. He also expressed his desire to support his former team members in finding new opportunities. Some might even start their research firms, which Anderson plans to encourage.

Previously, in November, Gautam Adani, one of the world’s wealthiest individuals and a leading figure in Indian business, was indicted in the United States on charges of fraud and conspiracy.

The US Department of Justice accuses Adani, along with senior executives of the Adani Group, of orchestrating a $250 million (£198 million) bribery scheme to secure contracts for his renewable energy company, Adani Green Energy Limited in India.

The indictment, unsealed in a New York federal court on Wednesday, alleges that Adani and his co-defendants paid or planned to pay $265 million in bribes to Indian officials to secure contracts expected to yield over $2 billion in profits over two decades.