It has been reported (here, behind a paywall), that CONSOB (the Italian stock exchange regulator) has been investigating comments made by luxury goods manufacturer Brunello Cucinelli in relation to the company’s compliance with the EU’s Russian sanctions.
Last week several short sellers of Brunello Cucinelli stock issued reports alleging that the company’s stores remained open in Russia and continued to sell prohibited luxury goods. Despite denials from the company, these reports led to a sharp reduction in the price of the shares and trading in the stock was suspended.
The CONSOB investigation is primarily focussed on the question of whether the company has misled the market in its public comments and denials.