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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!