Short-seller Grizzly Research released a report titled, "We Believe SharkNinja, Inc. ( SN ) is a China Hustle Based on Rampant Looting and Conflicts of Interest with the Chinese Chairman" on Thursday. Here's a look at the allegations in the report. 

The Details: Grizzly Research alleges that SharkNinja ( SN ) "engaged in some of the worst practices of old-school China hustle stocks" including: 

Allegations of transferring assets to insiders for a nominal consideration

Allegations of overleveraging the company before its IPO in order to pay special dividends to a controlling shareholder

Claims of nepotism

Allegations of an undisclosed related party in the same line of business

Benzinga reached out to SharkNinja ( SN ) for comment, but had not received a response from the company before publication. 

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SharkNinja ( SN ) increased its debt before going public by over $300 million and then transferred more than $600 million to Wang through special dividends and related-party loans, according to Grizzly Research. 

Grizzly claims that SharkNinja ( SN ) shares an address with an undisclosed related party that the company's chairman, Xuning Wang, controls and operates in a similar business. The short seller speculates there is a conflict of interest and noted over $3 billion purchases from related parties from 2021 to 2023. 

The report also claims SharkNinja ( SN ) sold a key subsidiary that holds the rights to "the only official looking" online storefronts on JD.com and Alibaba's platform Tmall to chairman Wang for only nominal consideration.

"Based on our research, we strongly believe that 49% of SharkNinja ( SN ) (China) Technology should not be sold for only a nominal consideration," Grizzly Research wrote. 

SN Price Action: According to Benzinga Pro, SharkNinja ( SN ) shares are up 4.11% at $99.12 at the time of publication Thursday. 

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