US court finds enough evidence to proceed with Grifols lawsuit against Gotham City
MADRID, May 30 (Reuters) - A New York court found enough evidence to continue with the defamation lawsuit filed by Spanish pharmaceutical company Grifols (GRLS.MC), opens new tab against short seller Gotham City Research, Grifols said in a statement on Friday.
Based on its findings, the Federal District Court for the Southern District of New York rejected a request filed by Gotham City to dismiss the lawsuit, Grifols said.
In January 2024, Gotham, which had previously shorted Grifols shares, released a report accusing the company of overstating earnings and understating debt. Grifols denied the allegations but lost around a third, opens new tab of its market value following the report.
Shorting involves borrowing shares in order to sell them, with the hope of buying them back more cheaply to make a profit.
According to Grifols, the court also found that Grifols adequately argued that Gotham City's report contained false statements, such as that the company had failed to disclose a $95 million loan to Scranton Enterprises.
Gotham City did not immediately respond to a request for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
22 minutes ago
- BBC News
Why Sunderland need 'experience and understanding' to survive
We asked for your questions for BBC Sport pundit Nedum Onuoha on your Premier League asked what Nedum's former club Sunderland can do to strengthen for the challenges of the Premier League next season after securing is a tough question.I would say they need to find people with good Premier League experience that also understand what it takes to galvanise a group to take on a challenge that most of those guys have not experienced before - and can do it as significant underdogs on a week-to-week you bring somebody in who expects to be successful straight away then some of the tougher times might affect the mood. You need someone with experience who is realistic and can also be part of a team do not want to go into the Premier League and just figure it out as you go along. You want to have a plan and to build. It seems like the manager has got a lot of belief in them by finally getting back up there, plus some of the players already there could potentially do well in the top need to find players who will complement that, not ones who are going to be doing things for themselves if things start to go sour because, in reality and as it stands, people do not expect them to win a lot of are going to have to be fighting their way through on a week-to-week basis.I have heard links with Jordan Henderson coming back. I do not know if he will, but if somebody with that much Premier League experience would want to be part of a transition period for the club - and he is also in one himself - then that would be is part of what you need - somebody who will understand the area, understand the fanbase and understand the club. Not somebody who just sees a chance to go and play in the Premier you fail to find the right mix then it will be a real split in terms of those who have come up with the side and those who Sunderland do not get experience and understanding then they will be in a terrible position in a year's time - probably heading back to the Championship but this time without that cohesive feeling they had just a few weeks Onuoha was speaking to BBC Sport's Nat HaywardSunderland fans, this is your Premier League club page. If you're using the app, tap the bell icon and select news alerts and we'll send the best bits straight to you. If you're on a desktop, hit follow and you'll start seeing more Sunderland content when you use the site.
BBC News
22 minutes ago
- BBC News
'Hale does not fit Aberdeen striker profile'
Ross County striker Ronan Hale does not fit the profile of forward being sought by Aberdeen despite a report linking the 26-year-old with Pittodrie along with Dundee and League One clubs Wigan Athletic, Luton Town and Port Vale. (Press & Journal), externalAberdeen, Preston North End and Wrexham are among the clubs interested in 16-year-old Cliftonville striker Shay Reid. (Belfast Newsletter), externalFormer Sweden international Erik Edman is among them a number of overseas scouts being added to Aberdeen's network after the arrival of Motherwell head of performance analysis Ross Clarkson. (Daily Record), externalRead Thursday's Scottish Gossip in full.
Daily Mail
24 minutes ago
- Daily Mail
Car finance claims dubbed the new PPI must not break the market, warns FCA
Britain's financial regulator has warned that any compensation paid out in the wake of motor finance commissions scandal can not be allowed to result in corporate bankruptcies. It comes ahead of closely watched Supreme Court decision on discretionary commission payments due next month that could see lenders shouldering a collective bill of £44billion. The court will decide whether to uphold a previous ruling that several such payments were unlawful, which could lead to consumer redress at the scale of the notorious PPI scandal. Announcing a consultation on potential redress, the Financial Conduct Authority said on Thursday that any compensation plan must 'ensure the integrity of the motor finance market, so it works well for future consumers'. The car finance sector is concerend it might be left with a massive bill for individuals who bought vehicles using loans that involved a discretionary commission arrangement (DCA) before January 2021. Barclays has set aside £90million in potential redress payments, while Santander has reserved £295million, and Lloyds Banking Group a whopping £1.2billion. Ratings agency Moody's has predicted that the industry might fork out £30billion, while the FCA has warned it could total £44billion. 'We've seen a range of redress rates suggested,' said the FCA. 'This includes some highly speculative figures by some CMCs (claims management companies) and law firms.' It added: 'If many firms were to go out of business or withdraw from the market, this could reduce competition and could make it more expensive for consumers to borrow money to buy a car in the future. 'Where firms fail, customers may not get any redress, as motor finance isn't covered by the Financial Services Compensation Scheme.' DCAs allowed car dealerships and brokers to determine the interest rate on a vehicle buyer's finance deal, which incentivised them to charge more expensive loans. High volumes of motor finance customers have since complained they did not receive sufficient information on DCAs before they were banned. A landmark Court of Appeal ruling last October declared it was unlawful for lenders to give car sellers commissions without a customer's informed consent. The Supreme Court heard an appeal against this court decision in early April and is set to deliver a final judgement on the matter sometime during the summer. Within six weeks of a verdict, the FCA will confirm whether to introduce a consumer redress scheme, as well as the timings for issuing a consultation on how such a plan would work. Among the concerns would be whether to have an opt-in scheme, where customers must actively confirm to their firm that they want to be included, or an opt-out scheme, with consumers automatically included unless they intentionally withdraw. Darren Richards, head of Broadstone's insurance, regulatory and risk advisory division, said: 'It is clear that the decisions behind the design of a redress scheme are complex and need to balance fairness for consumers and the integrity of the motor finance market.'
