(Bloomberg) Grifols SA sued Gotham City Research over a report alleging the company has overstated profit and misstated its accounting.Most Read from BloombergPutin Sends US Signal on Ukraine Talks, Seeing War AdvantageOne of World’s Richest Doctors Sees Fortune Surge to $12 BillionFed’s Preferred Inflation Gauge Cools on Robust SpendingJPMorgan Shuffles Top Managers as Jamie Dimon Prepares SuccessorsUN Court Tells Israel to Protect Gazans, Avoids Cease-FireGotham City Research, run by Daniel
Grifols Sues in NY Over Gotham City Short-Seller Report bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Pharmaceutical company Grifols (GRFS) faced a significant setback following the release of a report by Gotham City Research. The report accused the firm of serious accounting manipulations, raising concerns about its stock value.
By Pierre Bertrand Grifols shares rose Wednesday after the company further defended itself against accusations made a day earlier by short-seller Gotham City.
MADRID/BARCELONA (Reuters) -Shares in Grifols fell by more than 40% on Tuesday, wiping $3.83 billion off its market value, after hedge fund Gotham City Research questioned its accounting, prompting the Spanish drugmaker to "categorically" deny any wrongdoing. Gotham questioned Grifols reported debt and earnings before interest, taxes, depreciation and amortisation (EBITDA) which reduces its leverage ratio. It said the leverage ratio is close to 10 to 13 times EBITDA, rather than the six times reported by Grifols, which makes drugs with human plasma.