- Date
- 7 January 2024
Full Disclosure:
Tingo Group Charged for Corporate Lies
By Jaysen Sutton |
Hi Reader 👋🏽,
The story: Last year, short seller Hindenburg Research called out Tingo Group, a NASDAQ-listed fintech company, for being a sham. Shortly after the report, Tingo Group’s value fell by 60%. Since then, the Securities and Exchange Commission has charged the founder, Dozy Mmobuosi, with ‘massive fraud’ finding that most of the assets, revenues and customers weren’t actually real…
What you should know for your interviews: When most people invest in the stock market, they are betting ‘long’. This means they are buying the shares of a company betting that its value will go up, so they can sell the shares for a profit. By contrast, short sellers like Hindenburg Research, bet on the value of a company going down, typically by borrowing shares, selling those shares, and buying the shares if/when the price falls. This is the common domain of hedge funds, which are less regulated financial firms who engage in more creative financial strategies to make money.
Impact on law firms: How did Tingo Group stay undetected by regulators for so long? How was the company able to list on NASDAQ and lie about its financial position? These are questions for regulators, but also the company’s advisers. Dentons was a previous adviser to Tingo Group, while the company engaged White & Case to conduct an independent review after the report by Hindenburg Group (it appears the relationship was since terminated).
Have any thoughts? I'd love to hear your perspective below!
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