Brunello Cucinelli SpA shares fell after short seller Morpheus Research alleged that the luxury Italian cashmere brand is misleading investors about its Russian business and engaging in “aggressive discounting.”

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Morpheus, which includes alumni of Hindenburg Research, said a three-month investigation it carried out showed that Cucinelli continues to operate stores in Russia even though the company said it had closed them. Sales of luxury goods in Russia have been sanctioned by the European Union since the country’s full-scale invasion of Ukraine began in 2022.

The shares fell 5% in Milan before being halted for volatility. Cucinelli has been a stellar performer on the stock market since its 2012 initial public offering, increasing in value about 13 times over that perio

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