Burford Capital Ltd., the latest target of short seller Muddy Waters, said it found evidence of illegal market manipulation after a preliminary analysis of trading that led to last week’s record stock slump.
A forensic examination of detailed data by Burford and its expert, Professor Joshua Mitts of Columbia University, “discloses trading activity consistent with material illegal activity,” the litigation-finance firm said in a statement Aug. 12. The company said it has made regulatory authorities and criminal prosecutors aware of its findings and is considering its own options.
Burford’s traumatic week began when the stock sank 19% Aug. 6, the ...