Gotham focuses on links between Grifols and Scranton
Grifols categorically rejects false insinuations
Shares fall 3.2

MADRID, Feb 20 Reuters Shortseller fund Gotham City Research on Tuesday issued a second report on Grifols, maintaining some of its questions over the Spanish pharmaceutical company39;s accounting practices, dragging its shares down.

Gotham City39;s new report focuses on the links between Grifols and Scranton Enterprises NV, an investment vehicle partly linked with the Grifols39; founding family.

In a statement, Grifols again rejected Gotham39;s malicious, false and misleading insinuations that had the sole objective of destabilising Grifols and causing doubts amongst institutional investors.

Grifols shares have fallen by around 23 since Gotham City published its first report on Jan. 9, questioning the size of the company39;s debt, wiping around 2 billion euros 2.15 billion off its value.

Its shares were 3.2 down at midday on Tuesday, after partly recovering over the past two weeks.

Since Gotham City39;s first report, Grifols has made changes to its corporate governance, mainly withdrawing members of the founding Grifols family from executive jobs.

But the short seller said on Tuesday that the management changes made by Grifols since its first report last month indicate to us that at least some of our concerns are valid.

Grifols said it continued to pursue its litigation of Gotham. It has filed a U.S. lawsuit against Gotham City founder Daniel Yu…