MADRID (Reuters) – An investigating magistrate at the Spanish High Court said on Tuesday it had opened an investigation into U.S.-based short seller Gotham City’s actions that brought down the share price of Spanish pharmaceutical firm Grifols in January.
Judge Jose Luis Calama found enough elements to sustain an investigation into possible violation of market and consumer protection laws, the court said in a statement.
On January 8, Gotham City Grifols, which had previously short-sold Grifols shares, released a report accusing the company of overstating earnings and understating debt. Grifols lost a third of its value following the report.
The Barcelona-based company has repeatedly denied Gotham City’s reports.
(Reporting by Inti Landauro)
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