Grifols SA

july 30, 2024

Principle Contacts

Pamela Mayer

PMayer@kaplanfox.com

Laurence D. King

LKing@kaplanfox.com

Kaplan Fox & Kilsheimer LLP is Investigating Grifols SA (GRFS) for Potential Securities Law Violations

Kaplan Fox & Kilsheimer LLP is investigating potential securities violations against Grifols SA (GRFS) (“Grifols” or the “Company”) (NASDAQ: GRFS).

CLICK HERE TO RECEIVE MORE INFORMATION ABOUT THIS INVESTIGATION

If you are a Grifols investor and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.

On January 9, 2024 Gotham City Research LLC (“GCR”) published a short report titled “Grifols SA: Scranton and the Undisclosed Debts.” Among other things, the GCR report alleged that the Company “manipulates reported debt & EBITDA to artificially reduce reported leverage. . . .”

On January 9, 2024, the price of Grifols shares dropped $2.43 per share or nearly 22%, to close at $8.70 per share.

Then on March 22, 2024, Bloomberg published a story titled “Grifols Drops as Regulator Finds ‘Relevant Deficiencies'” that stated, in part, that “The regulator opened its review of Grifols’ earnings in January after the company was targeted by short-seller Gotham City Research, which accused Grifols of deceptive accounting and poor governance. While Grifols has denied the allegations, its shares have suffered . . . The regulator has given Grifols 15 days to publish ‘commitments to adequate its alternative performance metrics in upcoming financial reports’ as well as additional data on Ebitda and net financial debt for relevant companies in which it has non-controlling stakes. The regulator said that the conclusions of its review could potentially lead to sanctions for Grifols, though that decision may take several months.”

Following this news, the price of Grifols shares dropped $.56 per share or over 8%, to close at $6.22 per share on March 22, 2024.

Then, on July 30, 2024, Grifols disclosed in an SEC filing that it had overstated its stake in the Chinese company Shanghai RAAS Blood Products Co. Limited and also overstated its  consolidated reserves for the years 2020 to 2023 by €457 million due to “an incorrect application of the accounting treatment of the non-controlling interest.”

WHY CONTACT KAPLAN FOX

Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey.  With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand.  Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients.  For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. 

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

If you have any questions about this investigation, please contact:

Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com