Indian business tycoon Gautam Adani has hired Wachtell, Lipton, Rosen & Katz, the US activism defense law firm in its court battle against Hindenburg. Read to know more.
Gautam Adani hires Wachtell
Gautam Adani has hired Wachtell, Lipton, Rosen & Katz, the US powerhouse in its court battle against Hindenburg. The US-based short-seller firm in its report alleged the group is indulging in corporate fraud. Ten companies of the group including Adani Ports, Transmission, Enterprises, and Total Gas erased $117 billion from their market values during the selloff, forcing the empire to top up the share pledged for loans.
Hindenburg alleged that a group is using its entities in tax havens for facilitating money laundering, taxpayer theft, and corruption. However, the conglomerate is calling the report “bogus,” and threatening to take legal action. In a video speech last week, Adani stated their balance sheet is healthy. It added that it is mulling legal action against the firm for accounting fraud and stock market manipulation.
More on the legal case
In a rebuttal, Hindenburg Research revealed it is going to welcome legal action from Gautam Adani. “We fully stand by our report and believe any legal action taken against us would be meritless,” stated the Hindenburg Group in its statement. Additionally, on Thursday, Norway’s $1.4 trillion sovereign wealth fund sold its remaining stake in the other companies. This is increasing the pressure on the conglomerate. However, Life Insurance Corporation of India, a shareholder revealed it will soon be engaging with the group’s management.
On Friday, the Supreme Court of India will be hearing two public interest litigation pleas about the recent report. “The pressure will remain on the stocks till the companies get all clear. The plea in Supreme Court if granted will complicate matters,” stated Sameer Jalra. Kalra is the founder of Mumbai-based Target Investing.
