Grifols has initiated legal action against Gotham City in the United States, as disclosed by the company in a relevant information filing with the CNMV after market hours on Friday. The pharmaceutical group alleges that the bearish investment fund profited from Grifols short position by distributing a report that contained false assertions about accounting, communications, and finance. Some sources claim the fund earned about 20 million euros from the maneuver. Grifols, its executives, and related entities including General Industrial Partners and its founder Daniel Yu, as well as Cyrus de Weck and the companies within its portfolio, seek compensation for financial and reputational damages and the harm caused to associated parties due to the alleged actions and statements. The case raises questions about solvency and accounting credibility.
A week earlier, Grifols engaged the U.S. law firm Proskauer Rose to pursue legal action in the United States against Gotham City. The fund was accused of manipulating its accounts in early January, which reportedly contributed to a drop of as much as 40 percent in Grifols shares. The company is suing the bearish fund and its top executives, Daniel Yu and Cyrus de Weck, for libel and market manipulation, and to General Industrial Partners for related liability. Grifols reported that the stock market lost up to 32 percent of the company’s value following the allegations, and it asked the United States District Court for the Southern District of New York to order the defendants to compensate for data losses. The filing states that the company and its related parties suffered financial and reputational damage and requests injunctive relief to prevent further harmful actions.
Responsible for illegal behavior
Grifols has also filed a motion before the New York court demanding that the defendants be held fully accountable for the alleged illegal conduct referenced in the lawsuit. On Friday, Grifols closed up about 1.7 percent, trading at 9,560 euros, after a week that saw a 14.24 percent gain. Despite partial rebounds during the week, the stock remains around 30 percent below pre-crisis levels following the Gotham City Research report that accused the company of manipulating its books.
The company initiated the legal action in a week when the National Securities Market Commission CNMV began examining Grifols accounting information. The CNMV reviewed several facets of the Catalan company’s accounting, including its connections to the Scranton family office. As with these processes, the agency noted that gathering clarifying or supplementary information may be necessary and that the review could extend over several weeks before a precise conclusion date is set. The CNMV emphasized its commitment to transparency and stated that while extensive investigations occur, there is currently no evidence predicting the outcomes or potential actions at this stage. The regulator also noted that Grifols published and audited information may not fully align with regulatory standards.
Beyond examining Grifols’ financial information, CNMV is evaluating Gotham fund behavior in relation to the content of the report, its distribution pattern, and related market transactions. The regulator aims to determine whether the conduct complies with European rules on market abuse, particularly those governing the dissemination of misleading information and the wider implications for market integrity.