Gorilla Technology (GRRR) has filed a lawsuit against short seller Culper Research, pushing back on a damning report that accuses the company of running a fraudulent operation.
In the extensive report, Culper’s Christian Lamarco questioned Gorrila’s AI technology, its $1.8 billion contract with Thailand’s Electricity Authority, and its supposed expansion into the U.S.
“We believe Gorilla has drastically misrepresented or simply fabricated nearly every aspect of its business, spanning the Company’s product claims, office openings, and supposed multi-billion-dollar backlog and ‘signed contracts,’” Lamarco wrote.
Gorilla, which sells AI-driven IoT solutions focused on video surveillance and security, claims to have a $6.6 billion sales pipeline, including more than $2 billion in signed contracts.
Lamarco calls those claims “grossly misrepresented or fabricated entirely,” noting they’re supported by a near-constant stream of press releases.
He also disputes the company’s claim of opening a Seattle office.
After visiting the address listed in March, Lamarco found only a shared coworking space. A receptionist told him Gorilla had a mailbox there “but we don’t have any other business dealings with them.”
The report is especially critical of Gorilla’s product lineup. Lamarco argues that the firm’s “technological abilities are practically non-existent,” and that it sells off-the-shelf hardware it doesn’t manufacture.
That includes an image of its AI hardware described as a standard Dell desktop PC with a Gorilla logo “slapped on top,” available online for under $500.
In its lawsuit, Gorilla accuses Culper of making “false, misleading and defamatory statements” and is seeking compensatory and punitive damages from both Culper and Lamarco.
The company claims the report “goes beyond any market distortion or disinformation efforts we have observed” and calls it “especially brazen and nefarious.”
“Culper’s false and misleading statements have caused significant harm to Gorilla, including artificially depressing the price of Gorilla’s stock and damaging Gorilla’s reputation,” the company said.
“The report made baseless and malicious accusations regarding Gorilla’s business, products and strategic partners, in what appears to be a coordinated attempt to mislead the public and manipulate Gorilla’s share price — all for its own profit.”
In its 2024 earnings report, Gorilla posted $74.7 million in revenue, which is a 15.4% year-over-year increase. It expects to ramp up that figure up to $110 million this year.
Gorilla’s stock is up nearly 7% year to date and has surged 262.6% over the past 12 months.
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