Muddy Waters Research carry out due diligence based on investigation based research.
Muddy Waters Research are a respected US based company who have an expertise in uncovering fraud. When they investigate a company they provide evidence to back up any alleged fraud.
What’s the link with Quindell?
I was concerned when I read discussions on Twitter and the Internet about Quindell being investigated by Muddy Waters Research and decided to dig a bit deeper.
The results of the research
1. Muddy Waters Research have made no accusation of fraud by Quindell and are not investigating a Quindell fraud. This is very clear.
2. The allegations are not based on any facts.
3. The rumour can be tracked back to a tweet posted by Muddy Waters Research on the 13th October. This tweet had a link to an article regarding a conversation with Robert Terry. No mention whatsoever is made in the article regarding an alleged fraud. The discussion was about Quindell’s revenue guidance and KPIs.
Groundless accusation that can’t be substantiated. Link with Quindel is tenuous at best.
The flimsy substance of the many accusations regarding Quindell, highlights in my opinion, despite much effort by many, issues have yet been raised that concern me as an investor in the business.