Equinix Gets Subpoena as Board Examines Short Seller's Claims
By Colin Kellaher
Equinix, the target of a recent short-seller's report accusing the digital infrastructure company of "major accounting manipulations," on Monday said it has received a subpoena from the U.S. Attorney's Office for the Northern District of California.
The Redwood City, Calif., company also said its board's audit committee has begun an independent investigation to review the matters raised by short seller Hindenburg Research.
Equinix said the receipt of a subpoena "is not unusual in these circumstances," and that it intends to fully cooperate, adding that it doesn't expect to comment further on the matter "until appropriate to do so."
Equinix shares tumbled sharply last week after Hindenburg released a research report alleging, among other things, that Equinix manipulates its accounting for adjusted funds from operations and overstated the metric by at least 22% in 2023 alone.
Equinix on Monday said it takes seriously its obligations of transparency and accuracy in its financial reporting.
New York investment firm Hindenburg makes most of its money by betting against companies and publishing its research in hopes of moving the market against their stock. Hindenburg came to prominence after making bets against hydrogen truck company Nikola and more recently has targeted Indian conglomerate Adani Group and billionaire investor Carl Icahn's Icahn Enterprises.
-Ben Foldy contributed to this article
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 25, 2024 08:44 ET (12:44 GMT)
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