City regulator intervenes as Burford alleges market manipulation

Litigation finance firm hits back after attack by Muddy Waters
hedge fund

The City regulator has begun “wide-ranging enquiries”
following the US hedge fund Muddy Waters’ attack on the UK-listed
Burford Capital last week that sent its shares plummeting by 65% in
24 hours.

In what is fast becoming
one of the most extraordinary financial battles
in recent
years, Muddy Waters – a so-called short seller, which makes money
when share prices fall – made a string of accounting and poor
management allegations against Burford, a business that specialises
in providing funding for lawsuits.

Source: FS – All-News2-Economy
City regulator intervenes as Burford alleges market manipulation