CNMV Takes Action Against Gotham City Research and General Industrial Partners for Market Manipulation
The National Securities Market Commission (CNMV) has launched sanctioning proceedings against Gotham City Research LLC (Gotham) and General Industrial Partners LLP (GIP) over allegations of market manipulation involving the shares of Grifols. These proceedings also address breaches of the Regulation on Market Abuse concerning investment recommendations. Furthermore, the CNMV has flagged potential deficiencies in financial reporting and management submissions linked to Grifols, a Catalan company.
In a significant move, the supervisory body has forwarded all pertinent information regarding the alleged manipulative actions by Gotham and GIP to the Prosecutor's Office. This action suggests that there may be grounds for criminal proceedings based on potential violations of Article 284 of the Penal Code. Should a criminal case be opened, the administrative sanctioning process will be placed on hold until a conclusive judicial verdict is reached.
The CNMV’s statement follows a detailed investigation into Gotham's conduct and a legal analysis regarding the accuracy of Grifols' data. The commission determined that credible evidence suggests informational manipulation in the dealings of Gotham and GIP. They are accused of including multiple biased, false, or misleading elements in their report published on January 9.
Moreover, the CNMV has identified a failure on the part of these entities to comply with the requirements for objectively presenting investment recommendations. In terms of Grifols, while a sanctioning procedure has begun, the CNMV has reaffirmed all preliminary findings communicated to the market on March 21. Grifols could face serious ongoing violations classified under Article 2821b.
The regulatory body clarified that no evidence has been found to dispute the financial debt figures reported by Grifols in its consolidated annual financial statements or to suggest that the consolidation of its subsidiaries, Haema and BPC, was mishandled.
Additionally, the CNMV noted in its March 21 statement that it intends to complete its legal evaluation concerning Grifols’ financial disclosures in the coming months. The commission aims to ensure maximum transparency regarding the conclusions of its actions, including the possibility of initiating further sanctioning proceedings based on current or forthcoming analyses, under the protections provided by Article 336 of the LMVSI.
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