The National Securities Exchange Commission requires a detailed review of events at Grifols after investors were confronted with new questions about the group’s practices. According to sources familiar with the situation, the holding company faced attention this Tuesday in Gotham City’s latest report, which caused the stock to drop as much as 26 percent during the session. The investment firm asserts that the founding family used an intermediary to adjust the company’s accounts and present investors with a debt structure more favorable than what the group had previously offered. Grifols contends that the founding family does not hold a controlling stake and that only three of the 22 investors in the holding company are members of the Grifols family. Regulators requested clarity on the identities of those individuals and their relationship to the founding family, granting ten days to respond.
The Catalan group denied Gotham City’s accusations on all counts. It pointed to publicly available, audited accounts approved by KPMG. In an effort to boost transparency and trust in the market, the company held a conference call on Thursday and addressed investor questions directly. CEO Thomas Glanzmann reaffirmed a commitment to stronger governance and clearer communication.
During the telephone meeting, attended by senior executives Alfredo Arroto, Víctor Grifols, Raimon Grifols, and Thomas Glanzmann, topics included the company’s substantial debt and the potential sale of part of a subsidiary in China. Raimon Grifols stated that the sale would lower overall sales figures, which remain one of the main objectives, with the operation continuing in the coming months.
“Manipulation” accusation
Grifols faced a sharp decline in value after Gotham City Investigation released a report alleging that the company manipulated its accounts. The fund, known for probing irregularities, claims the group concealed portions of its debt and suggested the true share value was nearly zero. Grifols firmly rejected these claims, and the National Securities Market Commission, CNMV, did not suspend trading despite having such an option on the table.
Jenaro García, the figure associated with Gowex, is identified as Gotham City’s other notable victim prior to Grifols. Gotham City’s reputation for uncovering fraud has made its investigations highly influential. The report urges investors to avoid certain stock investments, while Grifols responds by emphasizing the strength of its consolidated financial statements and robust internal controls over financial reporting, supported by routine audits.
Within a day of the report, Grifols announced legal action against Gotham and signaled a renewed appeal to investors. The move helped revive share prices, which had fallen dramatically at the report’s release and in subsequent trading on Wall Street. The company reported a rebound in its position within the Spanish market following the response.