No public company wants to face a short attack. Unfortunately, short seller reports have become an increasingly frequent challenge for publicly-traded companies. These reports often allege financial misrepresentation, undisclosed regulatory risks, or questionable business relationships. While some raise legitimate concerns, others rely on misleading tactics—commonly known as "shorting and distorting." Once initiated, a short cycle can quickly escalate as investor reactions, media scrutiny, and regulatory inquiries compound the damage, regardless of the report's accuracy
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Originally Published by Corporate Counsel, 18 June 2025
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