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GIKLY.US
id: 1062, Created by , Scout

Grifols (GIKLY) Manipulating Financial Reporting Case

  • On January 9, 2024, Gotham City Research LLC published a report accusing Grifols of manipulating its reporting to distort reported leverage, while accurate leverage numbers would make Company’s shares uninvestable.
  • On it, $GIKLY fell 24.55%, losing $2.6B+ of shareholder value.
  • Investors may have grounds to suspect Grifols of deceptive reporting, which led to their losses.
On January 9, 2024, Gotham City Research LLC published a short-seller report accusing Grifols of artificially reducing leverage by consolidating earnings of units it doesn’t control and overstating profit. In addition, the report stated that Grifols manipulates reported debt & EBITDA to artificially reduce reported leverage to 6x which the researchers believe is closer to 10x-13x.

The report concludes if these estimates are correct, Grifols will face notably higher financing costs, and consequently, Company’s shares would be uninvestable.

On this news, $GIKLY fell 24.55% and lost over $2.6B billion of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect Grifols of issuing fraudulent financial reports, which led to their losses.

The case is already under investigation by at least one of the reputable law firms.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
09 January 2024
Collecting participants…

Grifols SA ADR

Grifols, S.A. operates as a plasma therapeutic company in Spain, the United States, Canada and internationally. The Biopharma segment provides plasma derivatives products, including Gamunex/Gamunex...

    Ticker
    GIKLY.US
    ISIN
    US3984382008
    CIK
    1438569
    Sector
    Healthcare
    Industry
    Drug Manufacturers - General
    Country
    USA
    Address
    Avinguda de la Generalitat, 152, Barcelona, Spain, 08174