Grifols Takes Legal Action Against Short-Seller, Stock Soars
Spanish pharmaceutical company Grifols plans to sue short-seller fund Gotham City Research after a critical report caused a $2.5 billion market value drop, leading to a 7.4% share price increase. The lawsuit aims to seek compensation for financial and reputational damage, with the company denying the report's allegations and planning an investor conference call. The report questioned Grifols' debt, earnings, and financial links, prompting Spain's CNMV stock market supervisor to investigate. Short-seller General Industrial Partners reduced its position in Grifols, while analysts highlighted accounting practices and related party ties that Grifols should address.
