Short seller Ben Axler said Thursday that Oatly stock was worth less than $ 10 a share after his company released a report alleging the company had shady accounting practices and misled investors about its sustainability claims.

The stock fell 3% in morning trading Thursday, the day after Axler’s firm Spruce Point Capital Management released the report. Still, the shares trade around $ 20, giving the company a market value of $ 11.9 billion.

“Oatly is one of those inflated bubble stocks,” Axler said Thursday in CNBC’s “Squawk Box”.

In late May, Oatly valued its US IPO at $ 17 per share. The stock has not fallen below its IPO price since it went public.

Oatly has denied the allegations, calling the allegations “false and misleading”.

“This short seller will benefit financially from a decline in Oatly stock price caused by these false reports,” the company said in a statement to CNBC on Wednesday. “Oatly denies all of these false claims made by the short seller and stands behind all activity and financial reporting.”

Spruce Point’s report includes claims that Oatly overestimated its U.S. earnings for 2018 by $ 6 million, failed to disclose that its gross margin calculation was inconsistent with other food companies, and inflated its capital expenditures.