Short Attack Was Market Manipulation, says Burford

Litigation finance firm Burford Capital, whose shares collapsed last week following a Muddy Waters research report, publishes detailed analysis of trading patterns in its shares

James Gard 12 August, 2019 | 11:17AM

Warning sign

Litigation firm Burford Capital said that the bear raid that knocked its shares down 65% in a single day last week was “consistent with illegal market manipulation”.

The firm published a detailed analysis of the trading patterns in its shares from two days before and after US hedge fund firm Muddy Waters published its report on the company. Burford said it had made regulators and lawyers aware of its findings and is “considering its options”. In a 25-page report Muddy Waters said that Burford was a “perfect storm for an accounting fiasco” and called the governance strictures at the business “laughter-inducing”.

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James Gard  is content editor for Morningstar.co.uk

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