Spruce Point Capital Management has taken a short position in WSP Global ($WSP.TO), citing concerns over what it describes as 'opaque' reporting practices and a history of corruption scandals associated with its leadership. The investment firm highlighted issues stemming from WSP Global's acquisition of Wood, alleging improper accounting practices. Furthermore, Spruce Point revealed an undisclosed whistleblower complaint alleging tax evasion by WSP Global, involving an Indian entity and shares in a Cyprus entity. WSP Global's stock experienced a significant drop following these allegations, with Spruce Point issuing a 'strong sell' recommendation. The firm also referenced a past scandal involving WSP Global's Vice Chairman, who was reprimanded by the Disciplinary Council of Quebec Engineers. Spruce Point's actions and the subsequent market reaction underscore the gravity of the allegations against WSP Global.
WSP Global stock drops following Spruce Point short report https://t.co/BHvW6MCDHq https://t.co/tluBs9qkM4
We found an undisclosed whistleblower complaint alleging tax evasion by $WSP.TO - The Company is not helping the case by heavily redacting its org chart. No worries, we dug up the Indian entity in question and find it holds shares in a Cyprus entity; Cyprus being the country… https://t.co/4WDkFQUZuK
(1) $WSP.TO made a patently false statement about its provision accounting being completed for the Wood acquisition. IFRS allows valuations to be finalized over 1yr, but WSP went beyond and didn't call it out. A clear accounting no-no. https://t.co/t4C65qciUO
WSP Global shares plunged after Spruce Point Capital said it was shorting the Canadian engineering firm’s stock, slapping it with a “strong sell” recommendation https://t.co/cE2ZzCCYyw
What could possibly go wrong at $WSP.TO with its Vice Chairman having led Genviar, blasted for a corruption scandal and having him reprimanded as guilty by the Disciplinary Council of Quebec Engineers? Anyone catch Shoiry's "retirement" announcement last Friday with the market… https://t.co/a0LQp5liTV
Spruce Point takes short position in WSP Global, alleges 'opaque' reporting https://t.co/DCYbWLdJCD https://t.co/GUPEYjzopk
Our interview today on $WSP.TO with @BNNBloomberg - looking fwd to management's response, or will it be dead silence like the rest our Montreal #Canada targets $NVEI.TO, $LSPD.TO, $SAP.TO ? https://t.co/NJZXdwIxmR
Catch us @BNNBloomberg live to discuss $WSP.TO formed from a corruption scandal. Time for fresh eyes... https://t.co/O7gxeMoEwN