Gautam Adani, the Indian billionaire, has enlisted the services of one of the most renowned and formidable activism defense law firms on Wall Street to counter the claims made against his business empire by the short seller Hindenburg Research, The Financial Times reported.
The Adani Group has hired senior lawyers from Wachtell, Lipton, Rosen & Katz, based in New York, to guide them on how to handle the crisis that has arisen since Hindenburg accused the conglomerate of accounting fraud and stock market manipulation.
The fact that the Adani Group has chosen to retain the services of Wachtell, which is considered to be one of the most expensive law firms in the United States, highlights the intense international pressure the group is facing following Hindenburg's allegations. For many years, Wachtell has been one of the most sought-after advisers by corporate boards at some of the largest US companies that are trying to protect themselves from hostile takeovers and activist investors.
Since Hindenburg made its accusations, the Adani Group, whose business interests span from energy to airports, has been struggling to maintain stability. The company, based in Gujarat, has denied the claims made by Hindenburg in a 413-page rebuttal.
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Wachtell was approached by the Adani Group's lawyers from the India-based law firm Cyril Amarchand Mangaldas, which is spearheading the defense of the industrial giant. The firm is led by Cyril Shroff, and his daughter Paridhi, who is married to Gautam Adani's oldest son and works at the law firm, is playing a key role in the defense.
Wachtell's primary focus will be on coordinating the legal, regulatory, and public relations efforts for the Adani Group, whose market value has plummeted by over $100 billion since Hindenburg published its report alleging fraud. Wachtell, established in 1965 by the partners whose names are now synonymous with the firm, has earned a reputation for handling complex corporate governance cases. Its history of successfully defending against unwanted attacks by corporate raiders since the 1980s has made it a popular choice for clients who find themselves in the crosshairs of investors and regulators.
