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Marex Group (MRX) Faces Investor Scrutiny Amid Short Seller Accusations - Hagens Berman

1. Marex's shares fell significantly after a critical short report. 2. The report claims Marex engaged in a multi-year accounting scheme. 3. Hagens Berman is investigating potential securities law violations. 4. Marex's financial statements have been called into question. 5. Negative operating cash flow raising concerns over financial health.

Short Seller
+1.49%Current Return
VS
+0.69%S&P 500
$34.8908/07 09:20 AM EDTEvent Start
$35.4108/08 04:01 PM EDTLatest Updated
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FAQ

Why Very Bearish?

The allegations result in a severe loss of investor confidence, impacting MRX's stock price. Historical cases, such as Enron and Lehman Brothers, show that accounting scandals lead to significant and prolonged stock declines.

How important is it?

The investigation raises serious concerns over Marex's credibility and financial stability, significantly impacting investor sentiment and stock price. The scale of the allegations suggests a very high likelihood of continued volatility in MRX's share price.

Why Short Term?

Immediate investor reaction expected due to the investigation and report disclosures. Similar scandals often have rapid consequences, evidenced by recent examples in corporate mismanagement.

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ENRNLEHM
, /PRNewswire/ -- On August 5, 2025, investors in Marex Group plc (NASDAQ: MRX) saw the price of their shares significantly decline in the wake of a critical short report accusing the company of engaging in an improper multi-year accounting scheme. The report has triggered national shareholders rights firm Hagens Berman to commence an investigation into whether Marex may have violated the securities laws. The firm urges Marex investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys. Visit: www.hbsslaw.com/investor-fraud/mrxContact the Firm Now: [email protected]                                       844-916-0895 Marex Group plc (MRX) Investigation: The investigation is focused on the accuracy Marex's assurances that it prepares its financial statements in accordance with relevant accounting rules and that it maintains sufficient disclosure controls and procedures. Marex's assurances may have come under question when, on August 5, 2025, NINGI Research published a scathing report concluding that "Marex has engaged in a multi-year accounting scheme involving a web of opaque off-balance sheet entities, fictitious intercompany transactions, and misleading disclosures to conceal significant losses, inflate profits, and mask its true risk exposure." NINGI's accusations include: "We found that Marex used an opaque fund structure in Luxembourg to manipulate earnings and mask risk[;]" "We found [that] Marex created a new undisclosed off-balance sheet entity, the 'Marex Fund'" and "[t]his new fund holds more than $930 million in derivatives, with Marex as the sole counterparty, yet is excluded from the group's risk models[;]" "In our opinion, Marex is exploiting revenue recognition policies to inflate trading income by selling OTC financial instruments (derivatives, structured notes, etc.) to its off-balance sheet 'Marex Fund'[;]" and "Marex claims strong operating cash flow (OCF) but that is a sham" because "[a]djusting for the billions in debt reported in OCF, Marex's OCF was negative ~$150 million in 2024 and negative ~$258 million in 2023." In response to this report, the price of Marex shares significantly fell on August 5, 2025. "We're investigating whether Marex may have misled investors about the accuracy of its financials and the sufficiency of its disclosure controls," said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in Marex and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the Marex investigation, read more » Whistleblowers: Persons with non-public information regarding Marex Group should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens BermanHagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.  SOURCE Hagens Berman Sobol Shapiro LLP WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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