Hindenburg Research on Thursday disclosed short positions in Block Inc (SQ.N) and alleged that the payments firm led by Twitter co-founder Jack Dorsey overstated its user numbers and understated its customer acquisition costs.
Block vowed to fight back, saying it would explore legal action against the short seller for its “factually inaccurate and misleading report” that was “designed to deceive and confuse investors”.
“Hindenburg is known for these types of attacks, which are designed solely to allow short sellers to profit from a declined stock price,” the payments firm said, adding that it would work with the U.S. Securities and Exchange Commission.
Source : Hindenburg criticizes Dorsey’s payments firm Block, leading to a drop in share prices