Prosthetics firm's stock plunges as it denies short-seller's Russia 'propaganda' allegations
Ottobock's stock has dropped significantly following allegations from a hedge fund regarding financial misconduct and ties to Russian business. The company has denied these claims, stating they will provide more information after their annual general meeting. Analysts express concerns over Ottobock's financial practices and its dependency on the Russian market.
- ▪Ottobock's stock fell by over 20% since its IPO, with an 11% drop reported on Tuesday.
- ▪The hedge fund claims that CEO Näder has withdrawn more money from the company than it has earned for 15 years.
- ▪Grizzly Research estimates that over 30% of Ottobock's net income is derived from Russian business, which is higher than official figures.
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An Ottobock spokesperson told CNBC in a statement that, in light of its annual general meeting on Tuesday, it is "not in a position to provide detailed responses to the individual allegations at this time"."That said, we categorically reject the statements and claims made in the report as well as the report's overall conclusion. We would be pleased to offer a more detailed discussion following the Annual General Meeting," the spokesperson added.The hedge fund alleges that Näder has taken more money out of the company annually than it has earned for at least 15 years.
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