Major Reports from Muddy Waters Research | Generated by AI
Question: What are the major reports from Muddy Waters Research?
Answer:
Muddy Waters Research, founded by Carson Block, is an activist short-selling firm known for publishing detailed due diligence reports alleging fraud, accounting issues, or misleading practices in publicly traded companies, often leading to significant stock price declines.
Most Famous Report:
- Sino-Forest Corp (2011): This is widely regarded as Muddy Waters’ breakthrough and most impactful report. They accused the Chinese forestry company of being a “multi-billion dollar Ponzi scheme” by inflating assets and earnings through fraudulent timber holdings. The stock plummeted over 80%, leading to the company’s bankruptcy, regulatory investigations, and major losses for investors like John Paulson.
Other Notable Historical Reports:
- Luckin Coffee (2020): Alleged fabrication of sales, contributing to the company’s scandal and delisting.
- NQ Mobile (2013): Claimed fictitious customers and revenues.
- NMC Health (2019): Uncovered inflated cash balances and financial irregularities.
Recent Major Reports (2025):
- AppLovin (APP US, March 2025): Accused the company of violating platform terms of service by collecting user IDs, low incrementality in e-commerce conversions (only 25-35%), high churn, and privacy violations. A follow-up report addressed CEO responses as false.
- FTAI Aviation Ltd. (FTAI US, January 2025): Alleged misleading financial reporting by classifying one-time engine sales as recurring maintenance revenue, potential sanctions violations (sale to Iranian entity), and inflated margins.
- e.l.f. Beauty, Inc. (ELF US, early 2025): Claimed revenue and profit inflation, possibly through insufficient sales leading to inventory buildup.
These reports typically combine on-the-ground investigation, data analysis, and forensic accounting. The firm focuses on opacity in companies, historically many Chinese-listed, but increasingly global.
References:
- Muddy Waters Research Official Website
- Wikipedia: Muddy Waters Research
- AppLovin Report
- FTAI Report
- e.l.f. Beauty Report