Short Seller Cohodes Claims Home Capital Group Misled Him, Suit Say
Vipal Monga, 17 January 2018
Short seller Marc Cohodes on Tuesday sued Canadian mortgage lender Home Capital Group Inc. for 4 million Canadian dollars ($3.2 million) for allegedly misrepresenting the state of its business in 2015, leading him to close out short positions at a loss.
Mr. Cohodes alleges in the suit, filed in an Ontario court, that Home Capital and three former executives made false statements that led him to change his investment strategy. He had built a short position in the lender in 2014, but then changed the strategy by covering the shorts and buying back shares for more than C$3.6 million between March and June of 2015, according to reports.
