(Bloomberg) -- Grifols SA is pushing back against a report by Gotham City Research LLC that alleged the company has overstated profit and misstated its accounting, which sparked a record one-day selloff in the shares.  

The Barcelona-based blood plasma company said all the transactions mentioned in the short seller’s report were recorded and presented to regulatory authorities in Spain and the US. “There’s no new information that can be considered hidden,” Grifols said in a filing on Tuesday. 

The accounting treatment given to deals such as the sale of Haema and Biotest Pharmaceuticals Corp. to Scranton Enterprises BV, a vehicle related to the founding family, was fully endorsed by auditor KPMG, the company said. Gotham City had said that because of this transfer none of the revenues of the two companies were available to Grifols or its creditors to pay back debt.

Even so, investors were clearly spooked by the short-seller allegations. The stock plunged 26%, wiping out about €2.2 billion ($2.4 billion) of market value. At one point, it was down as much as 43% during the trading session. More than 26 million shares changed hands, compared with a daily average of about 1.5 million. 

Grifols is planning a management call with investors on Wednesday in an effort to reassure investors, according to analyst reports. The company declined to comment on whether its holding a call, but said in the filing that it would issue another statement relating to other aspects of the business that were criticized in the report. 

In their report, Gotham City said the stock market “appears to fundamentally misunderstand the company” and said Grifols artificially reduced leverage by consolidating earnings of units it doesn’t control. 

Analysts who cover Grifols viewed the report with skepticism, with some saying that the fund’s allegations weren’t new. 

“No one who knows the story should be surprised by this,” wrote Patricia Cifuentes, an analyst at Bestinver Securities, adding that she’s been adjusting the company’s leverage ratios for years and the off-balance sheet debt is well known.

The Spanish company has long faced concerns about its business and strategy for growing through debt-funded deals. In recent months, the stock has rebounded as the company took steps to sell assets and cut debt, reaching a deal to sell most of its stake in Shanghai RAAS Blood Products Co. to a Chinese company for about $1.8 billion.

About 2.6% of Grifols shares have been borrowed and sold short, according to S&P Global Market Intelligence data. That’s down from a peak of about 10% in March.

Grifols is also planning to repay its €1.84 billion of bonds due in 2025 using existing cash and money from the stake sale, according to a person familiar with the matter, adding it doesn’t need to access markets to refinance the debt. A representative for the company declined to comment on the repayment plans. 

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. 

Last year, the firm targeted French electronic price-tag maker SES-Imagotag SA. The stock has fallen about 24% since Gotham’s report. 

--With assistance from Bruce Douglas and Irene García Pérez.

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