Adani Faces Tough Battle in Potential Hindenburg Research Suit

Adani Group is eyeing litigation against Hindenburg Research as it tries to right itself after the New York short-selling firm’s fraud allegations cost it billions—but the Indian conglomerate’s US legal options are limited.

Adani’s losses topped $110 billion in recent weeks, as investors dumped shares after the Hindenburg report. Adani Group has called the report “bogus.”

Companies targeted by short reports often look to respond by suing the report issuers. Those that follow through with litigation don’t have a track record of winning. The cases are hard to prove because they often hinge on defamation claims, and the First Amendment ...