[tomelders]

> He was originally hired by two other neuroscientists who also sell biopharma stocks short

I'm blown away by this investment strategy. What a brilliant way to monetise exposing fraud. Get your proof, short the stock, publish your proof, profit!

[323]

In finance there are a number of hedge funds who do this, like Citron Research which specializes in exposing fraud and short selling it for profit.

[scaredginger]

This incentivisation is one of the classical arguments for allowing short sellers in the market

[scarmig]

This is an improvement over the status quo, which is that fraud exists, hurts patients, and continues to exist.

[pjbk]

Unfortunately it's more common than you think... I remember this case in particular from some years ago:

https://www.legalreader.com/st-jude-medical-files-lawsuit-ag...

[JumpCrisscross]

> Unfortunately it's more common

Why is calling out fraud unfortunate?

With respect to St. Jude, Muddy Waters was at least partially right [1].

[1] https://www.hipaajournal.com/fda-confirms-muddy-waters-claim...

[DiggyJohnson]

Presumably GP is not saying that the calling out of fraud is unfortunate, but that the fraud itself is unfortunate.

[pjbk]

Precisely, sorry if it was not clear enough. Pointing vulnerabilities and betting on the side to effectively become a stakeholder raises some concerns on your true intentions, even if it could be legal to do so.

[Sniffnoy]

There are several companies that do this! Hindenburg Research and Muddy Waters Research are two.

[meepmorp]

Doing well by doing good