Muddy Waters Research released a short‑seller report on March 17, 2026 that branded SoFi Technologies, Inc. a “financial engineering treadmill” and claimed the company’s personal‑loan charge‑off rate was closer to 6.1% than the 2.9% figure it reports. The report also alleged that SoFi had $312 million in unrecorded liabilities, a claim that could materially affect the company’s balance sheet and earnings forecasts.
In response, SoFi issued a statement on March 18, 2026 rejecting the Muddy Waters allegations as “factually inaccurate and misleading.” The company said it would explore legal action against the short‑seller and emphasized that its financial statements are accurate and compliant with U.S. GAAP. The rebuttal signals SoFi’s intent to defend its reporting integrity and to protect shareholder value.
The same day the report was released, SoFi’s CEO Anthony Noto purchased approximately $500,000 of SOFI stock at $17.32 per share. The purchase, announced in the company’s response, was interpreted by investors as a confidence signal that the company’s financial health and reporting practices are sound, countering the negative narrative presented by Muddy Waters.
Following the release of the Muddy Waters report, SoFi’s stock experienced a sharp intraday decline, falling as much as 6.5% before closing down 1.5% at $17.37. The next day, after the company’s rebuttal and the CEO’s stock purchase, the stock rebounded about 3% in early trading, reflecting a shift in investor sentiment toward the company’s defensive stance and the perceived credibility of its management.”,
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