Gotham City Research LLC published a short-seller report on Grifols, S.A. on January 9, 2024. In the report, Gotham City alleged that the stock market “appears to fundamentally misunderstand the company.” The report claimed that Grifols “artificially reduced leverage by consolidating earnings of units it doesn’t control and has overstated profit.” In addition, the report stated “GRF manipulates reported debt & EBITDA to artificially reduce reported leverage to 6x which we believe is closer to 10x-13x.” The report concluded if these estimates are correct, Grifols “will face notably higher financing costs. Consequently, we believe shares are uninvestable, likely zero.”

On this news, Grifols American Depositary Receipts fell over 33%, in pre-market trading on January 9, 2024.