Ben Otto
Adani Enterprises Ltd. is considering filing a lawsuit against US short-selling firm Hindenburg Research, which has released a report alleging fraud at an Indian conglomerate.
Adani’s group legal director, Jatin Jalandawala, said in a statement on Thursday that the company was reviewing provisions under U.S. and Indian law “for corrective and disciplinary action” against Hindenburg. Values of Adani Group companies.
He described the report as a “malicious hoax” and an attempt to mislead investors and prevent a subsequent public offering by Adani Enterprises.
Shares of seven companies linked to Adani fell Wednesday after Hindenburg released a lengthy report alleging fraud at Indian billionaire Gautam Adani’s conglomerate.Adani Enterprises fell 1.5%, Adani Ports & Special Economic Zone Ltd. closed 6.3% lower. Indian stock exchanges were closed on Thursday for a public holiday.
Hindenburg said it conducted a two-year investigation into Adani’s business practices and took short positions in the group’s companies through bonds traded in the United States and derivative products traded outside India.
Write to Ben Otto at ben.otto@wsj.com.
