Equinix commences investigation into short-seller Hindenburg's report
Reuters
Published Mar 25, 2024 09:34AM ET
(Reuters) - Data center firm Equinix (NASDAQ:EQIX) said on Monday its audit committee has commenced an independent investigation into the allegations made by short-seller Hindenburg Research in its report last week.
Hindenburg in its report alleged that Equinix, which operates as a real estate investment trust, was using an accounting trick to boost its adjusted funds from operations — a profitability metric for REITs.
The short-seller had also said in its report that Equinix was misclassifying its capital expenditure necessary for continuing operations as spending that it would use to expand its operations, making the company appear more profitable.
"We take seriously our obligations of transparency and accuracy in our financial reporting. We believe we have earned the trust of our investors — and all our stakeholders — by reliably delivering on our commitments with integrity," Equinix said in a statement on Monday.
Shortly after the report was released, Equinix said it received a subpoena from the U.S. Attorney's Office. The company said it "intends to fully cooperate in this matter" and does not expect to comment further until it deems appropriate to do so.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.