Bio-on executives face increased prison sentence requests in Italy

Prosecutors in Bologna have requested increased prison sentences for former Bio-on executives Marco Astorri and Guido Cicognani. The request seeks six years and nine months of imprisonment, an increase from the five years and two months previously handed down in November 2024. The case is currently under appeal.

Investigations into the collapse of the Italian bioplastics company have raised questions regarding the scope of financial scrutiny. While the prosecution's account has focused on four specific operators with short positions exceeding 0.5% of capital, reports suggest that confidential records from CONSOB, Italy’s financial markets regulator, identify at least 12 operators who reported short positions between 2017 and 2023.

Bio-on, once a high-value startup specializing in biodegradable polymers, collapsed following a period of intense panic-selling. The company's downfall resulted in the loss of approximately €850 million in investor savings. The discrepancy between the number of investigated operators and those identified in regulatory records has prompted inquiries into whether the full history of short-selling activity surrounding the company's collapse was adequately reconstructed.