Hindenburg Research, a U.S. investment research firm, said it is not under investigation by the US Securities and Exchange Commission (SEC) while discarding allegations connecting its founder to to a hedge fund for preparing reports targeting companies.

The explanation comes after a Canadian portal cited documents filed before a court in Ontario to allege that Hindenburg’s founder Nate Anderson was under cloud for alleged links with hedge funds. In a statement, the firm said that “Hindenburg is not under investigation by the SEC. The Group on January 16 announced its disbanding. The founder didn’t share a specific reason for his decision but expressed a desire to spend more time with friends and family in the future.

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The firm had made headlines globally in 2023 after publishing reports about billionaire Gautam Adani’s conglomerate, sparking political rows and major losses for the companies it targeted including Adani Group. However, after announcing the closure, the founder had not shared any specific reason for his decision but expressed a desire to spend more time with friends and family.

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“Nearly 100 individuals have been charged civilly or criminally by regulators at least in part through our work, including billionaires and oligarchs. We shook some empires that we felt needed shaking,” he wrote announcing the decision.

Citing a cache of documents filed at the Ontario Superior Court of Justice in a complex defamation lawsuit, the Market Frauds portal said the head of Canada’s Anson hedge fund, Moez Kassam admitted his firm has shared research “with a wide variety of sources” including Hindenburg’s Nate Anderson.

It is said that Hindenburg colluded with Anson while preparing a report, and the preparation of bearish reports without disclosure of participation can be charged as securities fraud by the US Securities and Exchange Commission

Hindenburg has alleged that the report “is largely based on an anonymous Tongan blog that is rife with factual errors, wild theorizing, and demonstrates a complete lack of understanding of US law”

However, the website claimed that they know for a fact, from the email conversations between Anderson and Anson Funds, that he was indeed working for Anson and published whatever they told him to, from the price target to what should and shouldn’t be in the report. “He asked them multiple times if they needed ‘more’. From what we can see in the dozens of exchanges, at no time did he have editorial control. He was being told what to publish,” the portal stated. It  also shared screenshots of some email interactions – which it claims to have accessed through the documents available with the Ontario court – between Hindenburg and Anson to support its charge.

The site further claimed that there are multiple counts of securities fraud for both Anson Funds and Nate Anderson, and they have only gone through 5% of what’s in there as of the time of writing, adding that from what they have read so far, it is almost a certainty that when the whole exchange between Hindenburg and Anson reaches the SEC, Nate Anderson will be charged with securities fraud in 2025.