Will Hindenburg be held accountable for the attack? Report on LPP S.A.

Professor Michał Romanowski gave an interview entitled “Will Hindenburg be held accountable for the attack?”, which was published on 19 December 2024 in the newspapers "Rzeczpospolita" and "Parkiet" (the Stock Exchange and Investors’ Gazette). The interview is also available online [link below].

The professor discussed the controversy surrounding the Hindenburg Research report, which led to a 36% drop in the share price of one of Poland’s largest companies – LPP S.A. – in a single trading session, resulting in a loss of PLN 12 billion in market capitalisation.

In its report, Hindenburg put forward false allegations, accusing LPP that the sale of its business in Russia was a sham and that, as a result, banks would terminate LPP’s financing. Furthermore, Hindenburg did not allow LPP’s management to respond to the allegations prior to publication.

LPP has repeatedly and comprehensively demonstrated the falsity of Hindenburg’s allegations. Despite nine months having passed since the attack, Hindenburg has made no attempt to engage in a debate with LPP. Following a complaint filed by LPP, represented by Romanowski i Wspólnicy, the public prosecutor’s office launched an investigation into suspected manipulation of LPP’s share price.

Professor Romanowski explains that this was an unprecedented attack on a listed company in Poland and the European Union. He pointed out that this business model of profiting from short selling is contrary to the MAR Regulation. He emphasised that similar practices could destabilise financial markets and affect national security, particularly in light of Russia’s aggression against Ukraine. This is therefore not merely an issue for LPP, but a systemic problem across the European Union, touching on matters of cybersecurity. He also proposes specific solutions to prevent such incidents in the future.

Romanowski & Partners is acting as legal counsel to LPP on all legal and communications matters relating to the Hindenburg attack. The firm is advising the company through a team comprising Michał Romanowski, Piotr Haiduk, Aleksandra Cyniak and Aleksander Orzeł.

Read more in the interview: Rzeczpospolita: Link | Parkiet: Link

Live interview [HERE - Polish version only]