The recent report from short-seller Hindenburg Research on the India-based Adani Group is “highly credible and extremely well researched,” says top U.S. investor Bill Ackman in a tweet, according to an article in Reuters. In the wake of the report, which accuses the company of using offshore tax havens improperly, Adani’s seven listed group companies lost a combined $10.73 billion.
Adani Group has insisted that the report is categorically false. The conglomerate is considering taking “remedial and punitive action” against Hindenburg, who responded that if Adani Group files a lawsuit in the United States they will release documents in the legal discovery process that will prove their research. Ackman, the founder of Pershing Square, waded into the controversy on Twitter. In a callback to his own billion-dollar bet against Herbalife over a decade ago, Ackman tweeted “Adani’s response is the same as Herbalife’s response to our original 350-page presentation,” and reiterated that Herbalife is still a pyramid scheme. Ackman is not invested in Adani in any way, and pulled out of his Herbalife short at a loss in 2018 after the shares in the company shot up more than 150%. Ackman also called out the response from Adani Group, saying it “speaks volumes,” the article reports.