In an effort to reassure investors about the soundness of his business empire's finances, Indian billionaire Gautam Adani has recruited one of Wall Street's most aggressive activism defence law firms to counter the allegations made by short seller Hindenburg Research.

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According to a report by The Financial Times the Adani Group recently hired senior attorneys at Wachtell, Lipton, Rosen & Katz in New York to help it navigate the crisis the Indian conglomerate has been in since Hindenburg accused it of stock market manipulation and accounting fraud in late January.

The Adani Group's selection of Wachtell, one of the costliest law firms in the US, demonstrates the intense worldwide pressure the organisation has been under since Hindenburg made its allegations. Wachtell has long been a top choice for corporate boards at some of the biggest US corporations under pressure to fend off activist investors or aggressive takeovers.

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What's the Adani Vs Hindenburg Research issue?

The Hindenburg Research alleged that the Adani Group had "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades". The disclosure sparked a USD 51-billion sell-off in shares of the group companies over two trading sessions.

The Adani group rubbished the charges and termed the report as a "malicious combination of selective misinformation and stale, baseless and discredited allegations". It said the allegations made by the short seller are a "calculated attack" on India, its institutions and its growth story, adding that the accusations are "nothing but a lie".

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The Adani Group stocks have since taken a beating on the bourses after Hindenburg Research made a litany of allegations. Meanwhile the Supreme Court agreed to hear a plea seeking a committee- or a court-monitored probe into the Hindenburg Research report on Friday.

Adani group shares fell for a second straight day on Friday amid concerns raised by key institutional investors and Life Insurance Corporation over the allegations of accounting fraud and share manipulation labelled by a the US-based short seller Hindenburg Research.

Also read: Adani Group shares fall amid institutional investors’ concern over Hindenburg report