In Law360, Litigators Discuss Steps For Cos. Reacting To Anonymous Short-Seller Claims
Short-seller campaigns have become increasingly common, touching almost every sector of the economy in the last five years. For most companies, the question is not if but when they will face such a campaign. In an article he co-authored for Law360, litigation and enforcement counsel Greg Demers analyzed different steps that a company should consider in response to pseudonymous short-seller allegations.
“While there is no one-size-fits-all approach, promptly investigating a short seller’s allegations and implementing remedial measures where necessary may serve as a form of insurance if a regulator or auditor later asks questions — and, at the very least, shows the regulator or auditor that you took the allegations seriously, even if they appeared to be frivolous,” the authors write.