Grifols Sues Gotham City Over ‘False’ Short-Seller Report (1)

Grifols SA sued Gotham City Research over a report alleging the company has overstated profit and misstated its accounting.

Gotham City Research, run by Daniel Yu and Cyrus de Weck, is the publishing arm of General Industrial Partners, a hedge fund that launched when Gotham City and short-selling fund Portsea Asset Management combined.

The complaint filed in federal court in New York on Friday says Gotham City and its principals are “predatory short sellers” who illicitly profit from “rigged short-and-distort schemes.”

“Unlike other short sellers, defendants crossed the line with their attack on Grifols by knowingly making false and ...