MADRID, July 1 Spanish wireless network provider Gowex said on Tuesday it would start legal action against Gotham City Research, accusing it of spreading rumours about the company to push down its share price.
Gowex shares slumped as much as 61 percent on Tuesday after Gotham City Research posted a report on its website in which it questioned the company's revenue reporting and the competence of its managers. Reuters was unable to determine the accuracy of Gotham City's claims.
In a statement, Gowex said the report was "absolutely false" and that it would take legal action against those who were responsible for it or having been involved in it.
U.S.-based Gotham City Research said in a disclaimer accompanying its report on Gowex that it stood to profit in the event that the company's stock declined.
Gotham City Research, which does not list a telephone number on its website, did not respond to requests for comment sent via its website and by email.
In April, British IT outsourcing services provider Quindell Plc also said it had started legal action against Gotham City Research related to a "coordinated shorting attack" against the company after it published a report questioning its revenue model and profit quality. (Reporting by Julien Toyer; editing by Tom Pfeiffer and Jane Merriman)