By The Canadian Press on February 8, 2024.
TORONTO – Shares of Fairfax Financial Holdings Ltd. were down more than 10 per cent Thursday after a short seller alleged the company manipulated asset values.
In a report, Muddy Waters Research, which said it was short Fairfax, said it believed a conservative adjustment to book value for the company should be 18 per cent lower than reported.
Fairfax said it disagreed with the allegations and insinuations in the report.
The company assured shareholders that its financial statements and reporting was in accordance with all applicable accounting principles.
Short sellers make money when the price of a stock they have sold short falls.
Fairfax shares were down $164.40 or about 12 per cent at $1,240.00 in trading on the Toronto Stock Exchange.
This report by The Canadian Press was first published Feb. 8, 2024.
Companies in this story: (TSX:FFH)