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Oatly Accused of Overstating Revenue and Greenwashing by Activist Short Spruce Point
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Short-seller Spruce Point targets Oatly over financial statement and ESG concerns
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Spruce Point
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Oatly accused by short seller of overstating revenue and sustainability efforts
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Image: Vlad Chorniy/Adobe Stock The inquiry was prompted by a short-selling activist who informed Kentucky regulators that Danimer did not tell investors it is subject to environmental regulations, which can be costly.
Reuters reported on May 21 that Kentucky’s state securities regulator is investigating plant-based plastics manufacturer Danimer Scientific after a financial investigator told the office that the new public company failed to make certain material disclosures.
The Securities Division of the Kentucky Department of Financial Institutions wrote in a letter on May 17, accessed by Reuters, that it “has opened a formal investigation into the matter.”
The letter was addressed to short-selling activist Ben Axler, whose firm Spruce Point Capital conducts forensic financial investigations. Axler told Reuters he had “approached the Kentucky regulator in early May to say that Danimer did not tell investors that it is subject to environmental re