Pirelli has engaged lawyers to combat claims made by Grizzly Research that suggest the tire manufacturer has a substantial relationship with Russia, potentially threatening Western security.
Grizzly's report indicates a discrepancy between Pirelli's reported earnings and Russian filings, asserting that 10% of Pirelli's net profits may originate from Russia, contrary to the company's claim of only 6% from the broader region including Russia, the Middle East, Africa, and India.
The report also alleges that Pirelli's operations in occupied Ukraine serve the Russian military, raising further concerns about the company's ties to the Russian state. Following the report, Pirelli's shares experienced volatility, initially dropping by 13% before recovering slightly.
The company has firmly denied the allegations, stating it does not produce tires for military use and is committed to protecting its shareholders and reputation through legal means