The bearish analysis firm Gotham City Research has once again come to the fore in the Spanish stock market by putting Grifols in the spotlight after publishing a report in which it accuses it of artificially reducing its debt and in which it considers that their shares are worth zero.
Gotham City Research knocked down Gowex
The New York-based bearish firm became known in Spain in 2014 when it put the Wi-Fi provider company Gowex on the ropes after denouncing that 90% of its income was false and that the value of the company was zero.
Its effect was devastating, Gowex shares, which were then listed on the Mercado Alternativo Bursátil (MAB), today known as BME Growth, plummeted, had to be suspended from trading, and days later its president, Jenaro García, confessed to The judge has falsified the accounts for at least the last 4 years, that is, since it began to contribute.
After recognizing this scandal, which left thousands of investors trapped, the technology company requested bankruptcy proceedings and the National Court opened criminal proceedings against its managers that have not yet been resolved. The Anti-Corruption Prosecutor’s Office requested 18 years in prison for several crimes, including investor fraud.
The CNMV looked closely at Gotham City Research
Founded in 1999, Gowex made its big leap with its entry to the MAB in the summer of 2010, where it became the “jewel in the crown.” However, after all these irregularities were uncovered, the company ended up in liquidation.
The singular emergence of the until then unknown analysis firm led the National Securities Market Commission (CNMV) to initiate an investigation to find out whether its report could constitute an alleged market abuse.
Along with this, BME also pointed to market abuse and asked the firm to accurately detail the origin and scope of this information, both for itself and for its shareholders.
Other Gotham City Research targets
The “hedge fund” an abrupt fall in the stock market.
This time it was the turn of the blood plasma manufacturer Grifols, which it accuses of benefiting from manipulating its debt and its operating gross and maintains that its debt is actually close to 9 billion. This has caused Grifols shares to plummet 30% at the opening of the session to 9.96 euros per share.
