Capybara Research Sued for Fraud by Short Seller Report Subject

Capybara Research allegedly manipulated investors with a report about FingerMotion Inc., encouraging them to sell their shares or open short positions, according to a lawsuit FingerMotion filed against the short selling research firm.

The report and other negative public communications about FingerMotion were intended to drive down the mobile services company’s stock price, which would financially benefit Capybara’s unknown operators who held a short position in that stock, according to the complaint filed Thursday in US District Court for the Southern District of New York.

Capybara allegedly made false statements that FingerMotion was overstating its income by accounting for rebates, ...