Hindenburg Research, the short seller behind a market rout that wiped over $100 billion in value from India’s Adani Group, has revealed it holds short positions in Block Inc, the payments firm led by Twitter co-founder Jack Dorsey, according to a report Reuters.
And in a new research report on Block Inc, Hindenburg has alleged the company has both overstated its user numbers, and understated its customer acquisition costs.
Block has said it is exploring taking legal action action against the short seller for its “factually inaccurate and misleading report” that was “designed to deceive and confuse investors”, and that it would work with the US Securities and Exchange Commission (SEC).
Block’s shares fell by as much as 22% following publication of the report but later recovered some of that loss to trade down 15%.
