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.
Practise trading Burford Capital and other UK stocks with an IG demo account
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
