Medical Properties Trust has taken short seller Viceroy Research to court over what it calls “baseless allegations to drive down the company’s stock price” included in a recent short report.
According to a Thursday evening announcement the lawsuit “seeks permanent injunctive relief, disgorgement of ill-gotten gains, and compensatory and punitive damages from Viceroy and its members for defamation, civil conspiracy, tortious interference, private nuisance, and unjust enrichment.”
In a short report issued in late January, and updated on March 10, Viceroy accused the real estate investment trust of raising debt off balance sheet, disguising borrowings as asset sales, and recording false gains on transactions.
Medical Properties Trust’s stock price was up 1.3% at $8.15 per share in Friday afternoon trade. The stock has lost roughly a third of its value since Viceroy disclosed its short position in late January.