Cucinelli Rejects Short-Seller Russia Claims as Stock Slumps

Brunello Cucinelli SpA shares had their steepest drop on record after short seller Morpheus Research alleged the luxury Italian cashmere brand is misleading investors about its Russian business and engaging in “aggressive discounting.”

The Italian firm rejected the claims and said its Russian subsidiary is fully compliant with all regulations and it’s considering legal action to protect its reputation.