Grifols, a Spanish pharmaceutical company, experienced a surge in its shares on Wednesday following its robust defense against accusations made the previous day by short-seller Gotham City Research. The stock had taken a hit as a result of these allegations but has since recovered partially.
At 1358 GMT, Grifols shares were up 8.3% at EUR11.43, making up for some of the losses suffered on Tuesday, which amounted to a 26% drop.
In response to Gotham City Research’s criticisms of its financial practices, Grifols issued a comprehensive rebuttal and expressed full confidence in Chief Executive Thomas Glanzmann.
Furthermore, the company announced its intention to take legal action against Gotham Research to address the “significant financial and reputational damage caused to the company and all its stakeholders.” Grifols also emphasized the concerns raised among patients and donors due to these accusations.
Dow Jones Newswires attempted to contact Gotham City Research for comment, but they were unavailable at the time.
The allegations made by Gotham Research, accusing Grifols of manipulating its debt and earnings figures, led to a sharp decline in the company’s shares on Tuesday. Grifols vehemently denied any wrongdoing, stating that its accounting and reporting practices are audited and comply with regulations.