Alberta regulator seeks order against Badger short seller

The Alberta Securities Commission is taking action against prominent U.S. short seller Marc Culver Cohodes for social media posts that allegedly misrepresented Badger Daylighting Ltd., a Calgary-based hydrovac services company in which Cohodes holds a short position.

The ASC on Thursday issued a notice of application seeking an interim order to stop Cohodes from trading Badger securities and to prohibit him from making any public statements about the company that “he knows or reasonably ought to know are misleading or untrue.”

The regulator alleges that Cohodes knowingly made a series of misrepresentations about Badger that could have contributed to an artificial price for the company’s securities.

The ASC took particular issue with one post on social media on June 27 that allegedly misrepresented a picture of a Badger truck, which Cohodes alleges is involved in illegal toxic dumping.

“Cohodes has made numerous public claims of a similar nature over a period of more than a year, coinciding with the acquisition of his short position,” the ASC said.

The allegations against Cohodes have not been proven.

Cohodes, a high-profile short seller, refuted the ASC’s claims through his lawyer, Mark Wiffen.

“Mr. Cohodes’ view is that the allegations against him are baseless,” Wiffen said in an email. “He looks forward to the opportunity to demonstrate the truth of his views on Badger Daylighting.”