White & Case investigates allegations by short seller Muddy Waters against CPI Property Group

Global law firm White & Case LLP has reviewed the allegations made by short seller Muddy Waters against CPI Property Group S.A. (CPIPG) since November 2023, undertaking a comprehensive, independent internal investigation.

The investigation findings refuted the short seller's allegations that the majority shareholder took financial advantage to the detriment of the company and the bondholders. In addition, White & Case made recommendations to strengthen governance and compliance, including greater separation of the majority shareholder's family office and CPIPG. CPIPG published the summary of White & Case's findings and recommendations on its website.

White & Case's conclusions are based on an extensive review of corporate documents, interviews with key CPIPG personnel, database background checks and a comprehensive forensic electronic review of approximately 2.4 million records conducted over the past several months.

CPIPG is one of the leading European real estate groups, founded in the Czech Republic, based in Luxembourg and listed on the Frankfurt Stock Exchange. The Group focuses on the CEE region, Austria and Germany. Due to the current market situation and the risks inherent in the industry, real estate companies are often targeted by short seller attacks. White & Case has previously advised on similar situations.

The White & Case team, which conducted the investigation, was led by partner Daniel Zapf (Frankfurt) and Petr Pánek (Prague) and included partners Saam Golshani (Paris), Markus Langen (Frankfurt), Stefan Bressler (Hamburg) and Thomas Glauden (Luxemburg), local partner Alexandre Hublet (Brussels) and Nicolas Bechtold (Frankfurt), counsel Willem Van de Wiele (Brussels) and associate Joline Kuhn (Frankfurt).

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