Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Amira Nature Foods Ltd (NYSE:ANFI) were getting tossed again today, falling as much as 15%, and finishing down 14% following a short-seller report in Seeking Alpha.

So what: Shares of the Indian natural food seller dropped 5% yesterday, and the sell-off continued today, with the stock falling especially hard toward the end of the session. In a report released yesterday, short-seller Arihaan Capital, which has attacked Amira before, accused the company of blatant mistatements in SEC filings, the existence of an undisclosed related party, and a discrepancy between the financial results reported to the SEC and those filed in India.   

Now what: Amira stock is heavily shorted with more than 45% of shares sold short. The stock appears to have been caught up in the recent momentum sell-off, as the share price is down by nearly half after it missed earnings estimates in its last report. Arihaan brings up some potentially damaging claims, but fraud accusations, especially from short-sellers, tend to be overzealous and much more common than actual fraud. No investigations have been announced against Amira, but a recent change in auditors has also sparked some suspicion of foul play. With today's continued sell-off, it seems time for management to come out and defend the company against such claims. I'd expect to at least hear a rebuttal when the company reports earnings within the next few weeks.