As the bad news continues, Gautam Adani employs a New York law firm to combat the problem the organization is experiencing

According to the Financial Times, embattled Gautam Adani engaged a prominent New York law firm to assist it on how to respond to fraud claims made by a new US hedge fund that have plunged shares of his name-sake conglomerate.

Companies accused of business mismanagement and wrongdoing frequently turn to the Wall Street law firm Wachtell, Lipton, Rosen & Katz for representation, the newspaper reported, citing sources.

According to the newspaper, Wachtell’s primary focus will be on coordinating legal, regulatory, and public relations for the Adani Group, whose market value has fallen by more than $100 billion as a result of the investment fund Hindenburg Research’s explosive allegations of accounting fraud, share price manipulation, and money laundering against the company.

All of the accusations presented by Hindenburg Research have been vehemently refuted by Gautam Adani. Investor apprehension regarding the financial stability of his debt-ridden firm, however, has not abated.

Read Also – India and Pakistan Women’s T20 World Cup match pits tomorrow

The Adani Group was slammed with additional bad news on Friday when the employment of the law firm was reported. Moody’s, a major player in credit ratings, cut the outlook for four Adani investments from stable to negative, and its venerable Lex column in the Financial Times predicted a bleak future for Gautam Adani. “Adani’s

The renewable energy division of the business, Adani Green Energy Ltd (AGEL), and Adani Green Energy, Restricted Group-1 are among the entities whose outlooks Moody’s lowered. Adani Transmission Step-One and Adani Electricity, Mumbai, are the other two.

Following the recent publication of a study by a short-seller outlining governance issues in the company, the market equity values of the Adani Group companies “significantly and rapidly declined,” according to Moody’s.

The lowest investment grade assigned by Moody’s is Ba3, which is what Adani Green Energy possesses. A negative outlook means there’s a good chance the ratings will be cut in the short- to medium term. Companies with low ratings typically find it more difficult to sell bonds and raise loans to support expansion.

Adani Green’s outlook was changed from positive to negative, according to Moody’s, “taking into account the company’s significant capital expenditure program and dependence on sponsor support, which may take the form of subordinated debt or shareholder loans, which will likely be less certain in the current environment.”

Moody’s behavior The eight primary Adani Group companies that are listed on the stock exchange experienced another decline on Friday. Trading in two was halted shortly after it started after

Separately, Reuters reported that SEBI, the regulator in charge of policing the stock market, is looking into Adani Group’s connections to some of the buyers in the conglomerate’s botched $2.5 billion share sale.

According to sources cited by Reuters, the Securities and Exchange Board of India (SEBI) is investigating any possible violations of Indian securities regulations or any conflicts of interest in the share sale process. According to the news agency, the watchdog is looking into potential connections between the group and at least two Mauritius-based companies.

In other news, the weightings for four Adani Group firms have been reduced by global share index provider MSCI, which is also hurting the price of Adani shares. Smaller weightings for the firms in MSCI will result from the revisions, which reflect declines in the value of Adani shares.