Paul Hastings partners: Key takeaways for public companies facing short-seller reports

Few events can disrupt a public company’s trajectory as suddenly as the publication of a short-seller report.  Often sensational in tone and light on substance, these reports typically allege that a company has misstated its financial condition, overstated business prospects, or engaged in improper practices.  The motive is rarely hidden: drive the stock price down for the short-seller’s own financial gain.The impact, however, extends far beyond short-term market volatility. In today’s litigation landscape, ...