Grifols reject latest Gotham report as 'malicious, false and misleading'

The dispute between Grifols and the hedge fund Gotham City Research continued on Tuesday, with the Catalan pharmaceutical calling Gotham's latest report questioning its accounting as "malicious, false and misleading." 

Six weeks on from their initial report which caused Grifols' shares to tumble 40%, Gotham published another document saying that Grifols had, in their view, "answered some questions, but did not address others." 

The new report said that recent changes to Grifols' management and board indicated that at least some of their concerns were valid.  

Questions posed in the latest document include "how Grifols and Scranton both fully consolidate the same assets, at the same time," namely Haema AG and BPC Plasma, and whether "Grifols or Scranton informed their lenders or creditors of this fact, when borrowing from them." 

They also ask "who owns and controls Scranton Enterprises NV," and whether Grifols is "open to hiring an independent forensic accounting firm to investigate its commercial and accounting practices, and release those findings publicly." 

On Tuesday morning, Grifols shares fell 5% in the wake of the latest report from Gotham. 

Malicious, false and misleading 

Through a statement to Spain's National Securities Market Commission (CNMV), Grifols rejected the "malicious, false and misleading insinuations" of the new report. 

The report aims to "destabilize Grifols and cause doubts among institutional investors," the company said. "We have already addressed each of the malicious and misleading questions." 

The management of the multinational reiterated its "strong commitment to transparency, integrity and ethical conduct." 

In the statement, Grifols pointed out that it has an ongoing court case with the hedge fund and that it is providing all information required in relation to this matter.