Short Seller Gotham ‘Vindicated’ by Quindell Accounting Fine
- U.K. regulator fined Quindell accountants $980,000 over audit
- Gotham accused tech company of misreporting accounts in 2014
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The founder of New York short seller Gotham City Research LLC says he feels "vindicated" after U.K. regulators fined the accountants for Quindell Plc 700,000 pounds ($980,000) over their role in the software provider’s misstatements.
Gotham in 2014 published a report questioning Quindell’s finances, triggering a 39 percent one-day drop in the company’s shares. Arrandco Audit Ltd., formerly RSM Tenon Audit Ltd., and one of its audit partners were fined for their roles in assisting Quindell’s financial misstatements, the U.K. Financial Reporting Council said in a statement Tuesday. Quindell changed its name to Watchstone Group Plc in 2015.