Mapping relationships and identifying the motives of malicious actors and short sellers
Nardello & Co. was retained on behalf of a company that had been the subject of a public attack concerning the safety and efficacy of one of its products that led to a significant drop in the company’s stock price. The company wanted to determine whether short sellers and/or competitors were behind the attack and if so, whether any of the parties were working in concert. Through extensive background investigations of key parties and numerous interviews of individuals including those who had been publicly named in connection with the allegations, we were able to map relevant relationships and identify motives underpinning some of the key actors’ concerns with the client’s product. Research demonstrated that short sellers did not appear to be playing a significant role in the campaign and that, while a competitor may have been behind the more aggressive attacks, most parties appeared to be expressing objective concerns that emerged organically and were not coordinated by an adverse actor. Our findings informed our client’s legal strategy.