When a Short Seller Came for Samsonite Over Accounting Flaws

In May 2018, the world’s largest luggage maker Samsonite had just acquired a well-regarded luxury brand, and its stock traded at record highs. However, short seller Blue Orca Capital released a scathing report targeting Samsonite, believing it had uncovered flawed accounting, hidden conflicts, shaky governance, and perhaps outright fraud. CEO Ramesh Tainwala resigned amid accusations that he had faked a doctorate degree, but Samsonite pushed back against the other allegations. Harvard Business School professor Aiyesha Dey and host Brian Kenny discuss Samsonite’s accounting policies, how it navigated short seller Blue Orca Capital’s investigation, and what investors, managers, and students can learn in the case studies: Samsonite: Accounting Baggage?; Samsonite: The Short Seller’s Case; and Samsonite: The Rebuttal.