The AppLovin logo arranged on a laptop in New York on Feb. 26, 2025.
Gabby Jones | Bloomberg | Getty Images
Short-seller CapitalWatch has issued an apology and revised its report accusing a major AppLovin shareholder of financial crimes.
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 to 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.
CapitalWatch originally defended its report after the cease and desist letter was sent, writing a follow-up statement on X that the “coverage reflects a rigorous six-month investigation supported by documentary materials and multiple sources.”
In the apology, CapitalWatch said it “erroneously associated” a ruling in the Court of Bordeaux with Tang.
Despite the retraction, the short-seller wrote that its stance on AppLovin’s financials remains unchanged and that it will continue to post reports about the company.
“Capitalwatch extends its sincere apologies to Mr. Tang for the distress caused and the potential impact on his personal reputation,” the short-seller said in the apology.
CNBC has reached out to representatives for Tang, AppLovin and CapitalWatch for comment.
AppLovin has been the subject of critical reports from multiple short-sellers in the past, including Muddy Waters, Fuzzy Panda and Culper Research.
AppLovin CEO Adam Foroughi has denied those allegations.
“It’s disappointing that a few nefarious short-sellers are making false and misleading claims aimed at undermining our success, and driving down our stock price for their own financial gain,” Foroughi wrote following reports from Fuzzy Panda and Culper last year.
The advertising company’s stock has grown exponentially since the firm went public in April 2021 at around $65 per share.
The stock surged over 713% in 2024 and now trades above $450 per share.
