The stock of Temenos, a Swiss software company, saw a decline of more than 6% on Friday afternoon, continuing the trend from the previous day when it closed with a 28% drop.
In response to a report by short-seller Hindenburg Research, Temenos released a statement on Thursday, in which its board of directors strongly denied the allegations.
At 1:17 p.m. London time, Temenos shares were trading at around 59.66 Swiss francs ($67.67), down by 6.1%.
The statement from Temenos stated that Hindenburg’s report contained incorrect information, faulty analysis, and false and misleading claims.
The company also clarified that it was not approached for comments before the report was published.
Temenos also announced that it would release its audited results for 2023 on Monday, as planned, and that they are consistent with the pre-results announcement made in January.
When asked for a comment, Temenos declined to respond to CNBC’s inquiry on Friday. Hindenburg Research, an investment research firm, accused Temenos of having manipulated earnings and major accounting irregularities in its report.
The firm claimed to have conducted a four-month investigation, including interviews with 25 former employees of Temenos, and an analysis of legal records and financial statements.
In the past, Hindenburg has targeted other companies like activist investor Carl Icahn’s Icahn Enterprises and Indian conglomerate Adani Group.
In their report on Adani, published in early 2023, Hindenburg alleged that the company had been involved in a fraudulent scheme to manipulate stock prices for decades.
Adani denied these claims and called them baseless speculations. However, the market value of Adani plummeted by over $100 billion, and a planned $2.5 billion equity sale was canceled in the aftermath of the report.
The Securities and Exchange Board of India launched an investigation into Adani in response, and in January, the country’s Supreme Court, which is overseeing the case, stated that there was no reason to transfer the investigation to other authorities and asked the regulator to conclude it within three months.
