Ottobock, the Duderstadt-based prosthetics manufacturer, has hit back at a report by so-called short-sellers, rejecting the allegations it contains. The company’s shares fell by 11 per cent following the article’s publication.
The Duderstadt-based company had only gone public last autumn; on Tuesday, a report published online overshadowed its first annual general meeting: US firm Grizzly Research accused Ottobock of, among other things, artificially inflating earnings and concealing the company’s true performance. Ottobock was also said to be heavily dependent on its Russian business. Ultimately, the report concluded, Ottobock’s shares were significantly overvalued. Short-sellers such as Grizzly Research typically bet on falling share prices. On Wednesday, Ottobock dismissed the report as an opinion voiced by a party with a vested interest in falling prices – and rejected the allegations.
Ottobock considers legal action
The company said it adheres to international accounting standards and that its financial statements are reviewed by auditors. The claims regarding its Russian business were false, it said: in Russia, Ottobock supplies civilians exclusively. Responding to allegations about high levels of debt held by former owner and current majority shareholder Hans Georg Näder, Ottobock stated that it does not comment on shareholder matters. According to its own statements, the company is now examining legal action.