Davis Polk partner Ning Chiu discussed board-level considerations for responding to short seller allegations with Agenda. 

Ning noted that trying to shut down an attack via legal means, such as claiming defamation, is not a viable option, even if the short seller raises personal information in its report or makes exaggerated claims. She explained that a more effective approach is often to remain measured and allow the market time to assess and correct for the allegations.

“This is one of those things where you just have to wait it out a little bit. The market tends to correct itself,” Ning said. “Yes, there may be conversations you need to have with investors but maybe not a big press release to attack the attacker.”

“Sometimes boards want to respond quickly and, as a result, can overreact. It’s important not to let personal allegations impact the quality and independence of how directors respond,” Ning added. 

“So You’ve Been Targeted by a Short Seller, Now What?” Agenda (August 28, 2026) (subscription required) 

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