The Financial Times reported that the Indian conglomerate Adani Group has recruited one of Wall Street's most aggressive defence law firms to take on US short seller Hindenburg Research, which accused the company of stock manipulation and accounting fraud.

The development occurs as billionaire Gautam Adani continues to concentrate on persuading investors that his corporate empire has been established on a solid foundation and is not at risk of going bankrupt.

According to the FT report, which blockquoted four people with knowledge of the situation, the Adani Group has spoken with senior attorneys at Wachtell, Lipton, Rosen & Katz in New York about finding a way to resolve the crisis it is currently experiencing after Hindenburg's allegations significantly reduced its total market capitalization and soured investor sentiment.

The Adani Group's hiring of Wachtell, one of the priciest law firms in the US, demonstrates how the Hindenburg report has affected its listed corporations. After Hindenburg's charges, the group is also under intense pressure from major international financial institutions.

For decades, Wachtell has built a reputation for being the most sought-after adviser by some of the largest US companies, who have been targeted by activist investors or faced a hostile takeover. While Adani Group has dismissed the allegations leveled by Hindenburg Research, it has had little to no impact on investors and global financial institutions.