Adani Group sues shortseller Hindenburg in US Court, hires New York Law based Top Law Firm

Gearing up to take on the 'malicious' allegations against the Adani Group, which were dubbed as a 'calculated attack on India', Chairman Gautam Adani has hired leading defence law firm Wachtell in its battle against short-seller Hindenburg Research, RedboxGlobal India stated.

According to a report by Financial Times, the Adani Group has tapped senior lawyers at Wachtell, Lipton, Rosen & Katz, to advise it on how to stem the crisis facing the Indian conglomerate, four people with direct knowledge of the matter informed the outlet.

"Known as one of Wall Street’s fiercest law firms at activism defence, Wachtell is seeking to enlist further advisory support for the Adani Group, including from crisis communications firms, FT reported. It will predominantly focus on coordinating legal, regulatory and public relations for the group."

Adani group stocks took a huge beating on the bourses after US-based short seller Hindenburg Research made damaging allegations against the conglomerate causing it to lose billions of dollars in market value. In its 413-page response to the report, Adani Group said the claims were driven by "an ulterior motive" to "create a false market" to allow the US firm to make financial gains. Subsequent political furore had also erupted over the meltdown in the Adani group shares, with political parties stalling parliamentary proceedings and demanding an answer from the Prime Minister Narendra Modi-led government on the crisis. 

The FT report also revealed that Wachtell was approached by the Adani Group’s lawyers at Cyril Amarchand Mangaldas firm, which is the leading defence of the industrial giant. Notably, Cyril Amarchand Mangaldas is led by Cyril Shroff, whose daughter Paridhi is married to Gautam Adani's oldest son.

Adani Group calls off FPO

Despite the Rs 20,000 crore share sale of Adani's flagship firm being fully subscribed, the group called off its FPO on Wednesday, February 1. The decision was taken by the Board of Directors of the Company at its meeting in the interest of its subscribers. As many as 4.62 crore shares were sought as against an offer of 4.55 crore. 

Following the move, Gautam Adani, in a statement said, "The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business, and its management have been extremely reassuring and humbling Thank you."

(Only the headline and picture of this report may have been reworked by the LatestLaws staff; the rest of the content is auto-generated from a syndicated feed.)

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