11:22 AM EDT, 09/25/2024 (MT Newswires) -- Sun Communities ( SUI ) shares were down 3% in recent trading after the company was accused of executive misconduct and inflating growth figures in a report from short seller Blue Orca Capital on Wednesday.

The investment firm, which has a short position on Sun Communities ( SUI ), alleged that the company "is a mess of egregious executive behavior and manipulates critical financial disclosures which inflate adjusted funds from operation and reported organic growth."

Blue Orca Capital claims Sun Communities ( SUI ) inflates its adjusted funds from operations by underreporting recurring capital expenditures that resulted in artificially boosted share prices.

Sun Communities ( SUI ) CEO Gary Shiffman allegedly received multiple undisclosed loans from Directors, compromising the independence of key committees, including the Audit and Compensation Committees, according to Blue Orca.

Shiffman also took a $4M loan from the family of a director, which was used to purchase a luxury home at a significant discount, raising further concerns about conflicts of interest, the firm added.

Sun Communities ( SUI ) did not immediately respond to MT Newswires' request for comment.

Price: 134.48, Change: -4.62, Percent Change: -3.32