MADRID, Oct 9 (Reuters) - Spain's High Court on Thursday

summoned the founder of U.S.-based short seller Gotham City

Research, Daniel Yu, to testify over allegations his company

disseminated misleading information about pharma firm Grifols to

influence its share price.

In January 2024, Gotham City, which had previously shorted

Grifols shares, released a report accusing the company

of overstating earnings and understating debt. Grifols denied

the allegations but lost around a third of its market value

following the report.

Shorting involves borrowing a stock to sell it in the

expectation the price will fall, then buying it back at the

lower price to pocket the difference.

Investigating judge Jose Luis Calama has also summoned

General Industrial Partners manager Cyrus de Weck, the court

said in a statement.

General Industrial Partners is a partnership between Gotham

City Research and Portsea Asset Management, which was founded by

de Weck.

Both Yu and de Weck have been summoned as investigated

people in relation to potential market-related offences, the

court said.

Reuters has sent emails to Gotham City and General

Industrial Partners seeking comment, and a message to de Weck on

LinkedIn. It could not find contact details for Yu.

Gotham City

said in May

, in a separate case about its research on Grifols, that it

remained confident in the integrity of its work and stood by it.

Yu is scheduled to appear on February 26, with proceedings

potentially extending to February 27 if required. De Weck is set

to testify on March 5, with an option to continue the following

day.