March 15 Reuters Shares in Polish fashion company LPP dropped about 25 on Friday after Hindenburg Research published a report making allegations about the sale of the company39;s Russian assets and said it had taken a short position on the stock.

LPP did not immediately reply to an emailed request for comment and could not be reached for comment by phone.

A short position is a bet on a company39;s share price falling.

LPP sold its Russian company RE Trading in 2022 to a Chinese consortium and said its second Russian company, RE Development, would be shut down. Russian sales accounted for 19.2 of its group revenue for 202122.

The company has said it decided to sell its Russianregistered companies because of the uncertain situation and inability to predict the course of the armed conflict between Russia and Ukraine.

Hindenburg Research, founded in 2017 by Nathan Anderson, is a forensic financial research firm, which looks for accounting irregularities and mismanagement and makes bets against companies where it has found alleged wrongdoings.

It did not disclose the size of its short position in LPP.

At 0915 GMT, LPP shares were down 25, on track for their biggest daily percentage loss in two years.

Reporting by Anna Pruchnicka Editing by Jason Neely and Mark Potter

Source Reuters