Brunello Cucinelli shares suspended as short seller makes new Russia claims
Morpheus Research alleges Cucinelli continues to trade in Russia and misled investors over its operations
Shares in Italian luxury group Brunello Cucinelli were suspended on Thursday after falling sharply in the wake of a short seller report that alleged it had “misled shareholders” over its operations in Russia.
Morpheus Research, a London-based firm “dedicated to exposing fraud and corporate misconduct”, said a three-month investigation had found that Cucinelli “continues to operate several stores in Moscow with a wide offering of items priced at thousands of euros”.
The firm disclosed that it had built a short position in Cucinelli shares, which dropped 5 per cent in afternoon trading on Thursday.
In 2022, the EU imposed a ban on the export of luxury goods valued at more than €300 to Russia, in the wake of its full-scale invasion of Ukraine.
Last week, Cucinelli chief executive Luca Lisandroni told the Financial Times that the luxury group continued to sell a limited selection of items in Russia as permitted by EU law.
Lisandroni said its stores in Russia remained closed but that the brand continued to offer one-to-one client services in a Moscow showroom, and also continued to work with wholesalers.
Morpheus said its investigation — which involved interviews with former Cucinelli employees and partners, an “extensive analysis” of trade data and visits to Cucinelli’s Russian stores — cast doubt on the company’s claims.
“We found that Cucinelli continues to operate several stores in Moscow with a wide offering of items priced at thousands of euros,” Morpheus wrote.
A spokesperson for Cucinelli was not immediately available for comment. The Italian financial regulator said it was temporarily suspending the stock pending a statement from the company.