Samsonite Hammered Again Over Accounting Report

Shares of Samsonite have plunged for a second day in Hong Kong after an investor accused the luggage maker of questionable accounting practices and poor corporate governance.

The stock tumbled as much as 14 percent to a 14-month low on Friday morning.

Investment firm Blue Orca Capital had accused the company of concealing slowing growth and massaging its profit.

In a filing to the stock exchange, Samsonite had said the report was one-sided and misleading, and the conclusion drawn in the report were incorrect. It said the report might be intended specifically to undermine confidence in the company and its management, and to harm its reputation.

It said shareholders should treat the report with caution as it contains the opinions of a short seller whose interests may not be aligned with those of shareholders in general.

A short seller makes money by betting a company share price will fall. Samsonite said it reserved its right to take legal action against Blue Orca Capital and those responsible for the report.