SEC Drops Probe Into Gotham Over Report on Grifols’ Accounts

The US dropped its investigation into General Industrial Partners LLP, the parent company of Gotham City Research, which accused drug maker Grifols SA of deceptive accounting earlier this year.

The Securities and Exchange Commission “concluded the investigation” and does not “intend to recommend an enforcement action” against the hedge fund, according to a letter dated November 6 seen by Bloomberg.

The stock market regulator began its investigation in January after Gotham City Research published a report accusing Grifols of misleading reporting, including inflating profits by consolidating units it doesn’t own.

Grifols previously rejected the allegations, saying Gotham’s report ...