Grenke, a German financial services provider, is under investigation after a report by a short-selling investor research company alleged it of market manipulation, money laundering and fraud.
The 64-page report, which Grenke strongly rejects, was published by Fraser Perring of Viceroy Research. Shares of Grenke, which is listed on the Frankfurt Stock Exchange, were down 29% at one point on Tuesday and saw heavy falls again on Wednesday.Grenke argues that one of the main accusations in the report is false.
“A central accusation is that a substantial portion of the 1,078 million euros in cash and cash equivalents reported in the 2020 half-year financial report does not exist,” Grenke said in a statement. “This is demonstrably false.”