Financial regulatory body, the CNMV, levies a penalty of approximately 1.4 million on Grifols and its management for inaccuracies in their financial disclosures.
The Spanish National Securities Market Commission (CNMV) has fined pharmaceutical company Grifols €1.4 million for serious deficiencies in its financial information and management reports.
The fines were imposed due to Grifols providing inaccurate, untrue, or omitted data in its consolidated annual financial reports for 2021, 2022, and 2023, including the first half of 2023. The CNMV also found that the company presented misleading information about the calculation of alternative performance measures (APMs), gave incomplete explanations, and failed to disclose related-party transactions properly.
Several board members, including the current CEO, were also fined for these violations. Grifols' board members are fined an additional 800,000 euros, with the CEO receiving an additional 230,000 euros, and other board members receiving fines ranging from 66,000 to 126,000 euros.
The CNMV opened a disciplinary file against Grifols due to these irregularities and initiated disciplinary proceedings against investment firm Gotham and the fund General Industrial Partners (GIP) for market manipulation in Grifols shares and for failing to comply with the provisions of the regulation on market abuse in the matter of investment recommendations. However, the CNMV has not yet announced any sanctions for Gotham or GIP.
The new fines imposed on Grifols and its board members are reviewable by the National Court. So far, these sanctions have not been appealed.
The CNMV discovered that Grifols' reports contained incomplete explanations and a lack of inclusion of related operations. The company was also found to have provided untrue or misleading information about the calculation method of some APMs.
These infringements were classified as both "very serious" and "serious" by the CNMV, marking a broader effort by the regulator to enhance corporate transparency and financial reporting accuracy among Spanish firms.
[1] CNMV Resolution announcing the sanctions: [Link] [2] CNMV Press Release: [Link] [3] Gotham City Research Report: [Link] [4] Grifols' Annual Reports: [Link] [5] CNMV Statement on Enhancing Corporate Transparency: [Link]
Thespanish pharmaceutical company Grifols was penalized for providing inaccurate, untrue, or omitted data in their financial reports, as well as presenting misleading information about the calculation of alternative performance measures (APMs). The CNMV also found a lack of inclusion of related operations and incomplete explanations in Grifols' reports. Financially, the company is fined €1.4 million, and several board members, including the current CEO, receive additional fines for these violations.
