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US regulators receive details on Burford's share price manipulation claims

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US regulators receive details on Burford's share price manipulation claims

The U.S. Securities and Exchange Commission and the Department of Justice have been handed details of alleged market manipulation in the trading of shares in U.K.-based litigation finance firm Burford Capital Ltd., The Sunday Times reported.

Burford, which saw its share price tumble on Aug. 7 after U.S. hedge fund Muddy Waters LLC criticized its accounting practices in a report, said it found trading activity consistent with material illegal activity around the time its share price fell.

Burford, which is seeking a second listing in the U.S., noted that three minutes and 48 seconds before it was targeted by Muddy Waters, it identified sell orders on the firm's shares that were placed below or above market value and then canceled — known as spoofing and layering, respectively.

Burford's shares dropped 66% after the release of the Muddy Waters report, although it has slightly bounced back since then, according to the Times. The U.K. Financial Conduct Authority is also reportedly looking into the company's claims.