Hindenburg has ruined these companies with its reports, 3 have gone bankrupt, check details
Hindenburg Research recently released a report making serious allegations against the SEBI chief. Since its launch in December 2017, Hindenburg has issued a total of about 70 reports against 63 companies.
ZeeBiz WebTeam | Aug 13, 2024, 02:02 PM IST
Hindenburg Research recently released a report making serious allegations against the SEBI chief. Since its launch in December 2017, Hindenburg has issued a total of about 70 reports against 63 companies. Most of these companies suffered heavy losses after the reports came out. Let us know about 10 such companies which either went bankrupt or are on the verge of ruin due to Hindenburg's report.
1/8
WINS Finance
- Report Date: June 17, 2020
- Allegations: Hindenburg raised concerns about the company's financial stability after a 758% spike in shares was followed by the freezing of assets by a Chinese court.
- Outcome: The company's shares plummeted from $75 to $0.12, erasing almost all of its value.
2/8
Jumia Technologies
- Report Date: May 2019
- Allegations: The report accused Jumia of fraudulently inflating order numbers and misrepresenting its business model.
- Outcome: The stock price dropped by over 50% following the report, and the company faced multiple lawsuits.
3/8
Nikola
- Report Date: September 2020
- Allegations: Hindenburg accused Nikola of exaggerating its technology, including a truck that did not function as claimed.
- Outcome: The stock price crashed from $1977 to around $8-9, a 99.5% drop.
4/8
SCWorx
- Report Date: April 2020
- Allegations: The company falsely claimed to have secured a large order for COVID-19 testing kits.
- Outcome: The stock soared by 400% but later collapsed to $1, a 99% decline.
5/8
Lordstown Motors
- Report Date: March 2021
- Allegations: Hindenburg accused the company of overstating pre-orders and misleading investors.
- Outcome: The stock dropped by 20%, and the CEO and CFO resigned. The share price fell from $400 to $1.82, a 99.5% decline.
6/8
Clover Health
- Report Date: February 2021
- Allegations: Hindenburg revealed that the company was under investigation, a fact it had concealed from investors.
- Outcome: The stock fell from $13 to $1.86, an 85% drop.
7/8
HF Foods
- Report Date: March 23, 2020
- Allegations: Hindenburg accused the company of related-party transactions and misusing shareholder funds.
- Outcome: The stock fell from $8.2 to $3.4, a 60% decline.
8/8
PharmaCielo
- Report Date: February 2020
- Allegations: Hindenburg alleged that the company's co-founder was involved in securities fraud and questionable land transactions.
- Outcome: The company's reputation and stock price suffered significantly.