Core Viewpoint - Marex Group plc has faced a significant decline in share price following a critical report alleging a multi-year accounting scheme involving misleading financial practices [1][4]. Group 1: Investigation and Allegations - Hagens Berman, a national shareholders rights firm, has initiated an investigation into Marex for potential violations of securities laws, urging affected investors to report their losses [2][5]. - The investigation centers on the accuracy of Marex's financial statements and the adequacy of its disclosure controls [3][5]. - NINGI Research published a report accusing Marex of engaging in a complex accounting scheme that includes off-balance sheet entities and fictitious transactions to hide losses and inflate profits [4][7]. Group 2: Financial Practices and Impact - The report claims that Marex utilized an opaque fund structure in Luxembourg to manipulate earnings and conceal risk, including the creation of a new undisclosed off-balance sheet entity, the 'Marex Fund,' which holds over $930 million in derivatives [7]. - Marex's reported operating cash flow (OCF) has been called into question, with adjustments indicating negative OCF of approximately $150 million in 2024 and negative $258 million in 2023, despite claims of strong cash flow [7].
Marex Group (MRX) Faces Investor Scrutiny Amid Short Seller Accusations - Hagens Berman