Short seller CapitalWatch has issued an apology and revised its report accusing a major AppLovin (NASDAQ: APP) shareholder of financial crimes.
AppLovin’s stock popped 14% after the retraction.
The report, published last month, alleged relationships between Hao Tang and criminal syndicates, which the short seller now says is inaccurate.
“Descriptions asserting direct connections between Mr. Tang and Chen Zhi, Prince Group, Jin Bei Group, Tang Jun, and Yang Zhihui were inaccurate and failed to meet our publication standards,” CapitalWatch wrote in its apology on X posted Sunday.
“In light of these factual discrepancies—and to prevent the spread of misinformation and protect the legal rights of the parties involved—we have decided to remove and retract the passages relevant to Mr. Tang personally,” the short seller added.
The original report is still posted on their website.
AppLovin demanded that CapitalWatch retract its “defamatory and baseless” report two weeks ago in a cease and desist letter from lawyer Alex Spiro.
Spiro also represents other high-profile clients like Elon Musk.
AppLovin shares raced 55.78, or 13.7%, to $462.44.
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