“On June 20, 2024, the company received a decision to initiate an investigation into the suspected crime of manipulation of financial instruments in the form of the company’s shares, which are listed on the regulated market organized by the Warsaw Stock Exchange on March 15, 2024, by persons associated with Hindenburg. Warsaw, contrary to the prohibition set out in Article 15 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, by disseminating information via the Internet that gave or could give false or misleading information error signals regarding the actual demand, supply or price of a financial instrument, i.e. an act pursuant to Article 183(1) of the Act of July 29, 2005 on trading in financial instruments and is supervised by the District Prosecutor’s Office in Warsaw,” we read in the statement.
LPP submitted a notification to the prosecutor’s office on suspicion of committing a crime
Earlier in March, LPP submitted a notification to the prosecutor’s office on the suspicion of committing a crime to the detriment of the company, its shareholders and stock exchange investors, threatening the security of the financial market, and the notification is based on false or manipulated information published in the Hindenburg material. Hindenburg reported in March that LPP had not abandoned its operations in Russia after the invasion of Ukraine and – according to the Hindenburg Research report – LPP had ambitious plans for further expansion in Russia. After the outbreak of the war, LPP announced the disposal of Russian assets – it announced plans to dispose of its Russian company, on April 28, 2022 it announced its intention to sell, and on May 19 it announced the end of negotiations with the buyer. The transaction was finalized on June 30, 2022. However, Hindenburg claimed that the actions taken were apparent and a hoax.
LPP then accused Hindenburg of an organized disinformation attack aimed at reducing the price of LPP shares and of a possible attempt to take over influence in LPP. Moreover, LPP emphasized that it is not the owner of the Russian business and does not control, either directly or indirectly, the current owners and directors of the company that purchased its Russian company RE Trading OOO from LPP and also noted that it does not conduct commercial activities in the Russian Federation.
LPP manages the fashion brands Reserved, Cropp, House, Mohito and Sinsay. The company has been listed on the Warsaw Stock Exchange since 2001; is included in the WIG20 index. In the 2023 financial year (February 2023 – January 2024), the company had PLN 17.4 billion of consolidated revenues.
