INVESTIGATION TO PROBE CLAIMS OF COLLUSION AMONGST SHORT SELLERS

We were instructed by an AIM-listed telecommunications company to investigate suspected collusion between financial bloggers and investment funds who were alleged to have coordinated an attack on the client’s share price which involved amassing short positions prior to the publication of damaging information about one of the client’s former executives.

Our investigation found that a certain financial blogger was at the forefront of an effort to intentionally and strategically publicize information about the client that was designed to have the most significant negative impact on the client’s stock price.

Through research and extensive covert inquiries with industry sources, we confirmed the relationship between the financial blogger and one particular investment fund – which held shares in the client company and was one of the first funds to adopt a short position – which was also found to be involved in gathering and disseminating damaging information about the client.