Block’s Muddy Waters Accused of Paying Techtronic Report Author

Investor Carson Block’s Muddy Waters financed a short-seller whose allegations of accounting fraud at power tool giant Techtronic Industries Co. shaved $3.5 billion off its market value in a matter of hours, the company alleges in a series of federal court filings.

Muddy Waters gave an unspecified amount of money to a trader calling himself “Jehoshaphat Research,” and helped promote his February 22, 2023 research report that falsely claimed Techtronic’s books were a “web of deceit,” according to documents and pleadings the company filed in federal courts in Florida and Texas. Shares of Techtronic, the Hong Kong-based maker of Ryobi and other major brands, plunged 19% before the Hong Kong stock exchange halted trading.