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Oatly (NASDAQ:OTLY) stock is taking a beating on Wednesday following a short report from Spruce Point Capital Management.

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Spruce Point Capital Management has an issue with how Oatly is presenting data to investors. That includes in its Investor Presentation. Among this is alleged cherry-picked data concerning its operations.

Spruce Point Capital Management specifically points to the Swedish food company’s expansion data to the U.S. and Asia. The report claims that this hasn’t gone well and that Oatly is trying to hide this from investors.

In addition to this, other concerns come from the management team at the dairy alternative company. Company CFO Christian Hanke doesn’t disclose his role as Manager of Financial Reporting at Stratus Technologies. During that time, the company “restated financials over a multi-year period related to revenue recognition and lease accounting.”

To go along with that, Spruce Point Capital Management has a problem with Frances Rathke, the Chair of OTLY’s Audit Committee. She has misrepresented her CPA status in the past. The CFO was also the CFO, Treasurer, and Chief Accounting Officer of Green Mountain Coffee Roasters (NASDAQ:GMCR), which was being investigated by the SEC for accounting practices.

Spruce Point Capital Management said that Oatly faces “up to 30% to 70% intermediate-term downside risk, or $6.40 – $14.90 per share, and longer-term insolvency risk.”

OTLY stock movement today includes over 4.3 million shares changing hands. That almost matches the company’s daily average trading volume of 4.4 million shares.

OTLY stock was down 5.2% as of Wednesday morning and is down close to 1% since the start of the year.

There’s more stock market news today that investors will want to keep up with.

Luckily for them, InvestorPlace has it all collected and ready to go. That includes the biggest stock market stories to watch today, several Reddit stocks seeing movement, as well as Velodyne Lidar (NASDAQ:VLDR) jumping on news of a deal with Nvidia’s (NASDAQ:NVDA). You can learn all about these topics by checking out the links below!

More Wednesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.