Fintech lender SoFi disputes short seller Muddy Waters' report, considers legal action (updated)

SoFi Technologies

17/03/2026 23:55

Updates with Muddy Waters' response in bullet point 4

March 17 (Reuters) - California-based fintech lender SoFi Technologies SOFI.O said on Tuesday that it may explore legal action against short seller Muddy Waters Research, calling its report "factually inaccurate and misleading."

Muddy Waters earlier on Tuesday revealed a short position in SoFi, saying that the company "appears to have a material misstatement of at least $312 million of unrecorded debt. If we are correct, it raises the possibility that there are more extensive misstatements we have not detected."

During trading hours, the company's shares fell as much as 6.5% to $16.48 following the report.

"We have reviewed the full report and believe it is designed to deceive investors. SoFi maintains strong confidence in the integrity of our financial reporting," the fintech said.

Muddy Waters said in an emailed statement, "Muddy Waters has been sued a number of times. We're undefeated."

 (Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Alan Barona)

 ((RajveerSingh.Pardesi@thomsonreuters.com))