Andrew Left Case Spooks Short Sellers to Add Research Warnings

Short sellers are beefing up disclaimers in their research reports in the clearest signal yet that last month’s criminal charges against Andrew Left are reverberating through the industry.

Hindenburg Research and Kerrisdale Capitalboth upped warnings in reports this week in the wake of the charges against Left, who is accused of misleading investors by making quick trades after issuing his investment recommendations.

The new language shows that short sellers have long-term concerns about the impact of the Left case on an industry that critics say sometimes operates in legal gray areas. US authorities brought the charges against Left as ...