Muddy Waters Defends Burford Short Sell Amid FCA Probe
Law360, London (August 13, 2019, 3:47 PM BST) -- Muddy Waters, the U.S. short-seller, accused Burford Capital on Tuesday of using questionable accounting techniques and asked the Financial Conduct Authority to investigate whether the litigation funder's financial reports were manipulated.
The activist hedge fund also said the company has the “same illness” that doomed Enron, the U.S. energy company that filed for bankruptcy in 2001.
Tuesday's attack escalates its public battle with Burford with a new report detailing its research, asking the City watchdog to investigate whether the litigation-funding giant cherry-picked its financial reports to mask its "fragile" balance sheet.
Muddy Waters accused Burford of marking up the value of its litigation by...
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