Grifols shares fell 42.3% on Tuesday after investment fund Gotham City Research issued a report questioning the company's debt ratios.

Grifols categorically denied all of Gotham City's allegations and said the report included "false information."

Gotham City claimed that Grifols "manipulates" its reported debt and earnings before interest, taxes, depreciation and amortization, artificially reducing its leverage ratio through "misleading and incorrect" treatment of financial statements.

The investment fund said it believes the leverage ratio is close to between 10 and 13 times EBITDA, rather than the 6 times officially reported by the company.

(Reporting by Inti Landauro; editing by Kirsten Donovan; Spanish editing by Javi West Larrañaga)