Burford Capital share price: what next as US regulators receive share ‘spoofing’ allegations
Dealing in the shares of Burford Capital is under investigation by regulators on both sides of the Atlantic over allegations of market manipulation.
The US Securities and Exchange Commission (SEC) and the US Department of Justice (DoJ) received market manipulation allegations regarding the collapse of litigation financier Burford Capital, according to a report by the Sunday Times.
Claims of ‘spoof’ trading, whereby a trading order is submitted only to be cancelled to affect the share price, were first levied by Burford Capital.
Short seller Muddy Waters says Burford Capital lied to investors
Last week, short seller Muddy Waters released a report compiled with the assistance of ex-CIA operatives alleging that Burford Capital’s management lied to investors on multiple occasions.
Muddy Waters’ report claimed that Burford Capital was ‘a poor business masquerading as a great one’ and accused its management of engaging in questionable accounting practices.
Burford Capital hit back at Muddy Waters, labelling its report as 'false and misleading'.
The damning report saw Burford Capital’s share price to plummet more than 60%, with the stock later recovering, trading 40% lower than prior to the news breaking.
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