Italian luxury group Brunello Cucinelli rejected allegations from short-seller Morpheus Research that it continues substantial business in Russia despite EU sanctions. Morpheus claimed the company misled investors by keeping Moscow stores open. Cucinelli responded that its Russian activities are limited, in full compliance with EU rules, and consist mainly of customer care services and legally shipped goods. The group cited confirmation from Italy’s Customs Agency and said it may pursue legal action. The claims sent Cucinelli’s shares down 17.3% to 85 euros ($92.50). The company reported revenues of 1.3 billion euros ($1.4 billion) in 2024, with Russian sales accounting for 2% of turnover.