Overview
- Muddy Waters, which published its short report March 17, accused SoFi of hiding $312 million of debt and misstating loan losses, sparking sharp volatility in the stock.
- SoFi called the report inaccurate and said it is weighing legal action, and CEO Anthony Noto bought about $500,000 of shares to signal confidence.
- At the center of the dispute is a $312 million deal with JPMorgan that Muddy Waters calls undisclosed borrowing, while Mizuho’s Dan Dolev says filings show it was a loan sale and he kept a $38 target.
- The short seller estimates personal-loan charge-offs near 6.1%, compared with SoFi’s reported 2.89% and a 4.4% management adjustment that Dolev says better matches expected losses.
- Recent coverage split on the market reaction, with Fortune saying the stock has tracked the S&P 500 and others noting dips toward recent lows, and investors now look to upcoming disclosures and earnings for clarity.