Paysafe Group Plc on Tuesday denied allegations from Spotlight Research, which claimed that the company was enabling both illegal gambling and Chinese capital control evasion.
The company's stock fell as much as 37.9 percent to 230.1 pence at 1150 GMT due to speculation surrounding the report, before recovering to trade at 334.2 pence at 1408 GMT after the company rejected the research.
"Paysafe confirms that all material information in the report is either factually inaccurate or has been previously disclosed," the company said in a statement. [nRSM7410Ra]
The company also said that Spotlight Research, which has disclosed a short position, stood to gain from a fall in Paysafe share prices.
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Martina D'Couto)