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Shadowy Private Investigator Promised Catalyst Intel on Short Sellers — But Came Up Short, New Legal Documents Reveal

Wall Street Journal reporters, and a whistleblower who has since become an activist short seller. Catalyst dubbed the group the “wolfpack” and in November of 2017 sued in the Ontario Superior Court of Justice in Toronto, alleging the individuals and companies had engaged in a conspiracy to torpedo its troubled publicly traded lending entity, Callidus Capital Corp.  The allegations were based on an article published in the Wall Street Journal on Aug. 9, 2017, outlining whistleblower accusations against Catalyst and Callidus, which said the article triggered a “chaotic sell-off” of Callidus shares by “naked” short-sellers. The defendants have denied the charges and countersued.

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