Greek luxury goods maker Folli Follie said a report issued by Quintessential Capital Management (QCM) on the company was “defamatory” and damaging its interests.
The stock fell 30 percent on the Athens Stock Exchange on Friday after QCM issued a report which said that the company has overstated the number of points of sales it operated worldwide.
QCM, which has a short position on Folli Follie’s stocks, said in the report that Folli Follie had 289 points of sale instead of 630 declared in its 2016 annual report.
QCM, which has its headquarters in New York according to its website, also said it was concerned over Folli Follie’s finances.
“Quintessential Capital Management’s report is unfounded, false, defamatory and misleading, which results in damaging the interests of the firm and its shareholders,” Folli Follie said in a stock exchange filing.
The company added it has ordered its legal advisers to defend its legal rights, without specifying what that entailed. Folli Follie has activities in Greece, China and other countries around the world. It has a market value of about 1 billion euros. [Reuters]