Mallinckrodt PLC (NYSE: MNK)
Mallinckrodt wasn’t having the best of days in the market today. However, things just got quite a bit worse. Since the opening bell, the stock has been seeing declines, and, minutes ago, the declines gained momentum as the stock spiked further lower. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to MNK ahead.
MNK Is Taking A Dive
As mentioned above, Mallinckrodt wasn’t off to the best of days in the market today. After the opening bell, the stock went on a steady downward run. However, the losses weren’t huge. That is, until minutes ago when the stock started spiking down on high momentum. At the moment (11:37), MNK is trading at $61.69 per share after a loss of $6.11 per share (9.01%) thus far today.
Why The Stock Is Falling
As soon as we noticed the spike downward on MNK, the CNA Finance team started digging to see exactly what was causing the movement. Unfortunately, what we found is incredibly bad. Citron, the same firm that broke the news that tore VRX apart, broke news on Mallinckrodt today.
In a note, Citron Research had some harsh words to say about the CEO of MNK. In fact, they went as far as to say that the CEO of the company was “caught red handed committing securities fraud.” That’s a huge claim to make!
What We’ll Be Watching For Ahead
Moving forward, we’ll be watching for the response to the claims from MNK. However, I will say that I’m not too optimistic here. At the end of the day, Citron is a well respected firm that knows its research. The firm uncovered the Valeant Pharmaceuticals Philidor Scandal, and my knee-jerk reaction is that they just uncovered a big Mallinckrodt scandal. Nonetheless, we’ll keep a close eye on MNK and bring the news to you as it breaks!
Update – Mizohu is publicly defending MNK against Citron allegations.
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