GRFS Alert: Monsey Law Firm of Wohl & Fruchter LLP Investigating Grifols, S.A. for Potential Securities Law Violations
MONSEY, N.Y., Jan. 09, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether Grifols, S.A. (Nasdaq: GRFS) (“Grifols”) has violated federal securities laws based on allegations in a report published today by Gotham City Research (“Gotham”) alleging that Grifols has “manipulated” its debt and EBITDA figures to “artificially” lower its reported leverage.If you suffered losses as a result of today’s drop in Grifols’s stock price, and have questions about your legal rights, please contact us at the following link to discuss your options at no charge:
https://wohlfruchter.com/cases/grifols-s-a/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
*Why is there an investigation?*
Grifols is a plasma therapeutic company based in Spain that operates internationally.
On January 9, 2024, Gotham published a report alleging that Grifols “manipulated” its debt and EBITDA figures to “artificially” lower its reported leverage. While Grifols’ reported leverage is 6x, Gotham claims it should be reported at closer to 10x–13x. Gotham claims that should its “estimate of Grifols’ true leverage be correct, Grifols will face notably higher financing costs,” and “consequently, we believe shares are uninvestable, likely zero.”
Gotham also alleges that both GRF and Scranton Enterprises (a Grifols family vehicle) fully consolidate BPC + Haema onto their financial statements, which Gotham claims “is materially deceptive and incorrect.”
A supervisor at Spain’s National Securities Market Commission (CNMV) was quoted as saying that it “makes no sense to question the integrity of Grifols’ audited accounts or to ignore the information published this morning;” that “the CNMV is going to exercise its powers to clarify the situation;” and that “what we at the CNMV have to do is gather additional information to clarify the situation and see which aspects of the information need to be reviewed or analysed.”
As a result of the Gotham report, Grifols’ stock price has dropped over 20% in trading on January 9, 2024, as of 12:15 PM Eastern.
*About Wohl & Fruchter *
Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
*Contact:*
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com