Wolf Haldenstein Adler Freeman & Herz LLP is investigating potential securities fraud claims against Grifols S.A.

NEW YORK, Jan. 26, 2024 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of the American Depositary Receipts ("ADR's") of Grifols S.A. ("Grifols" or the "Company") for violations of securities laws.

All investors who purchased shares and incurred losses are advised to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the potential action on our website, www.whafh.com.

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Grifols purports to be a leading global specialty plasma therapeutics company, which develops, manufactures, and distributes a broad range of biological medicines based on plasma derived proteins.  Plasma derivatives are proteins found in human plasma, which once isolated and purified, have therapeutic value.  The Company has five business units: Plasma Procurement, Biopharma, Diagnostic, Bio Supplies and Others. 

On January 9, 2024, Gotham City Research published a report entitled: "Grifols SA: Scranton and the Undisclosed Debts."  According to the report, the Company "manipulates reported debt & EBITDA to artificially reduce reported leverage to 6x which we believe is close to 10x-13x," and that if the estimate regarding the Company's leverage is correct, Grifols "will face notably higher financing costs" and that the shares "are uninvestable, likely zero."  Gotham City also raised concerns about Grifols' financial statements including earnings from BPC Plasma and Haema, two companies owned by Scranton Enterprises, NV, an investment vehicle for some members of Grifols' founding family and a group of former executives.  

On this news, the Company's ADS declined from a close of $11.13 per ADR on January 8, 2024, down to $8.70 per ADR on January 9, 2024, and continued downward to $6.78 per ADR at close on January 17, 2024.   

In response to the report, management stated its intention to take legal action against Gotham City Research.  However, investors were not convinced by management's answers.  "Little new info was given at the call, where management mostly reiterated the messages of the past few days," Alvaro Lenze, an analyst at Alantra Equities, wrote in a note.  "We see a missed opportunity to communicate a stronger message" on improving transparency and governance[.]"  Management was particularly illusive with respect to transactions involving the two businesses and Scranton.   

Additionally, the Company's Spanish securities regulator requested more information from Grifols.   

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774

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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP