Burford, Quinn Emanuel Make Case for Manipulation in Litigation Funder's Stock Plunge
The third-party litigation funder and its lawyers want a U.K. judge to force the London Stock Exchange to reveal who was behind allegedly suspicious trades.
September 30, 2019 at 05:09 PM
3 minute read
The original version of this story was published on The American Lawyer
After hiring a Columbia University law professor to probe the precipitous stock drop that came when short seller Muddy Waters released a scathing report on its accounting practices, Burford Capital has asked a London court for judicial approval to obtain details from the London Stock Exchange about who was behind suspicious trading.
Burford first lodged allegations of market manipulation and indicated it had engaged Quinn Emanuel Urquhart & Sullivan, Morrison & Foerster and Freshfields Bruckhaus Deringer on August 12, less than a week after short seller Muddy Waters said in a report that Burford was "a perfect storm for an accounting fiasco".
More than $1.2 billion was subsequently wiped from Burford's value, with shares dropping 64% at one point before rallying later in the afternoon.
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