On September 13, 2022, market analyst NINGI Research published a report alleging, among other things, that “BRP has doctored its organic growth rate to beat analysts’ estimates” and that “the company misled investors by presenting inorganic revenue as organic revenue through a self-proclaimed separate agreement with an affiliate[.]”
The report also alleges that “in 2020 BRP’s proprietary ‘MGA of the Future’ technology was misappropriated by an employee and handed to a competitor, as alleged by BRP in a lawsuit” and that “the company allegedly did not notice the misappropriation until May 2021 but did not disclose the intellectual property theft to investors to date, despite arguing in a lawsuit that the theft has and will have severe damage to BRP’s revenue and market share[.]”
On this news, BRP Group’s stock fell $2.39 per share, or 7%, to close at $29.98 per share on September 13, 2022.
