Short Sellers’ Secret Talks and Alliances Emerge in Court Battle

  • Hedge fund boss says research was shared with half-dozen bears
  • Some of those prominent short sellers say they didn’t team up

The financial district of Toronto.

Photographer: Stephanie Foden/Bloomberg
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When short sellers knock down stocks, a debate often breaks out: Was there more than one bear involved?

After years of such conjecture among embattled corporate chieftains, a little noticed lawsuit in Toronto is exposing a variety of alleged contacts and even alliances between skeptical researchers and investment firms.