THG has provided the Financial Conduct Authority (FCA) with a dossier of data it believes proves that hedge funds and stockbrokers conspired to push its share price down.
The company’s chief executive Matt Moulding thinks that the dossier of irregular stock market and short-selling data will prove collusion against the ecommerce platform, according to the Financial Times.
The City regulator is looking into a claim by THG that a sales person at investment bank Numis urged their clients to sell shares claiming that THG had accounting irregularities.
The news comes following THG’s disastrous initial public offering (IPO) in 2020 which was the City’s largest listing since since 2013.
A number of sell orders saw nearly £2 billion wiped off of the company’s valuation within just a number of hours on the firm’s investor day.
The orders came after a number of reports over the value of THG’s tech division, Ingenuity, weak cashflow and a lack of robust corporate leadership.
The investor day proved to be a disaster for the ecommerce company after the day was initially intended to quash concerns over its Ingenuity arm.
Chief executive Matt Moulding is suspicious that his firm suffered from an aggressive short attack at the hand of investment banks, fund managers and hedge funds.
According to the Financial Times, a source close to THG said that the shares slide was the result of a co-ordinated effort to sell shares to trigger automatic trading algorithms which cause shares to fall sharply.