The UK 's Financial Conduct Authority ( FCA ) is making enquiries into a short - selling report written by US activist , Muddy Waters concerning litigation financier Burford Capital . On 6 August , Muddy Waters announced over Twitter an upcoming short attack on an undisclosed company . Burford 's shares fell 46 % the day of the tweet . Muddy Waters then released a report on 7 August critiquing the litigation backed company 's accounts and management . Burford 's stock fell a further 46 % . Burford 's management has issued a statement saying it has found evidence of suspect trading activity around the time of Muddy Waters ' note .
The UK's Financial Conduct Authority (FCA) is making enquiries into a short-selling report written by US activist investor Muddy Waters concerning litigation financier Burford Capital. On 6 August, Muddy Waters announced over Twitter an upcoming short attack on an undisclosed company. Burford's shares fell 19% the day of the tweet. Muddy Waters then released a report on 7 August critiquing the litigation finance firm's accounts and management. Burford's stock fell a further 46%. Burford's management has issued a statement saying it has found evidence of suspect trading patterns around the time of Muddy Waters' note.