After Adani, Hindenburg Targets Ex-Twitter CEO Jack Dorsey’s Payments Firm

New York: Two months after Hindenburg Research’s report on Adani Group wreaked havoc on the Indian conglomerate, the US short-seller has targeted former Twitter CEO Jack Dorsey.

In another scathing report, Hindenburg said on Thursday it held short positions in Block Inc, alleging that the Dorsey-headed payments firm overstated its user counts and understated its customer acquisition costs, Reuters reported.

“Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping,” the short seller said on its website.

Block shares fell 18% in pre-market trading after the report.

The news agency reached out to Block for a reaction, but there was no immediate response.

Hindenburg said that former Block employees estimated 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.

According to Ortex data, about 5.2% of Block’s free float shares were in short position as of March 22.

Hindenburg’s report on the Indian conglomerate wiped out around $100 billion from Adani Group’s valuation, severely hurting investors and shareholders.