Short Sellers Feel Heat After US Charges Andrew Left With Fraud
- His lawyer warns of a chilling effect on bearish research
- Peers predict more spending on lawyers, difficult fundraising
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Trampled by markets and attacked by angry executives, short sellers now find themselves confronting their biggest worry yet: the US government.
Fresh accusations by federal authorities that one of the industry’s most prominent players, Andrew Left, committed securities fraud is sending shock waves across the already shrinking field of investors who specialize in betting against specific stocks. For a group that has long courted controversy by taking on some of the biggest names in business, it’s a particularly sobering moment.