A New York federal judge has allowed the defamation lawsuit filed by Spanish pharmaceutical company Grifols against short seller Gotham City Research to proceed, rejecting Gotham's request to dismiss the case. The lawsuit stems from a report by Gotham that caused a sharp decline in Grifols' stock price. However, the judge dismissed most of Grifols' defamation claims, ruling that many of Gotham's statements were opinions protected under free speech. The court's decision narrows the scope of the case but upholds the transparency of Grifols in the proceedings. Separately, a federal judge dismissed a separate lawsuit filed by a former executive alleging that PepsiCo defrauded and defamed him by denying his claim to have invented Flamin' Hot Cheetos.