Digital payment systems firm Paysafe Group PLC (LON:PAYS) saw its shares drop sharply today which traders attributed to a negative report from a US short selling firm called Spotlight Research.

Responding to the report, Paysafe said it was aware of the Spotlight Research note and confirmed that “all material information in the report is either factually inaccurate or has been previously disclosed.”

The FTSE 250-listed company also pointed out that Spotlight “has disclosed a potential short interest benefiting from any weakness in Paysafe’s share price.”

Paysafe added: “The Group has a history of significant, transparent disclosure to the market, publishing two prospectuses in 2015 and being subject to substantial additional scrutiny through a full UKLA listing process as part of its move to the Main Market of the London Stock Exchange.”

It said: “Having reiterated its upgraded guidance for the current financial year on 8 November 2016, the Company’s business continues to perform well and management is next scheduled to update the market on 12 January 2017.”

Having dropped by around 25% to a session low of 230.1p this morning, Paysafe shares rallied after its statement, but were still down over 12%, or 45.5p at 325.3p in mid-afternoon trading.