Eurofins denies short seller Muddy Waters' allegations after share fall
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
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Source: reuters
- Eurofins Responds to Allegations: Eurofins, a lab testing firm, rejected allegations by short seller Muddy Waters questioning its financial reporting and expressed confidence in its accounts and operations.
- Muddy Waters' Claims: Muddy Waters took a short position in Eurofins shares and suggested that the company's financial statements might have overstatements of profits, cash balances, and asset values.
- Eurofins' Confidence: Eurofins stated that it believes the allegations are inaccurate, irrelevant, biased, or misleading and is completely confident in the integrity of its accounts, operational performance, controls, and risk management.
- Company's Rebuttal: Eurofins responded to specific claims, mentioning that real estate transactions with related parties were at arm's length terms and all buildings were paid for by their owner. The company also highlighted the auditing of cash amounts at local and consolidated levels.
- Market Response: Despite a significant drop in shares on Monday, Eurofins' shares rebounded by 4.7% on Tuesday following the company's response to the allegations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
