** Shares in Italy's Brunello Cucinelli BCU.MI temporarily suspended from trading after falling 4.95% to 97.96 euros

** Morpheus Research says it has taken a short position in Brunello Cucinelli

** "We found that Cucinelli continues to operate several stores in Moscow with a wide offering of items priced at thousands of euros" - Morpheus Research

** "We also highlight that Cucinelli has resorted to aggressive discounting to manage bloated inventory that dwarfs direct peers, with items ending up in stores like TJ Maxx, risking dilution to the brand’s exclusive positioning", it adds

** The Financial Times had reported on Sunday hedge fund Pertento Partners had taken a short position, claiming the company "is violating EU sanctions by continuing to sell luxury goods in Russia"

** Reuters could not independently verify the claims in the short seller's report

** Brunello Cucinelli did not immediately reply to Reuters

(Reporting by Philippe Leroy Beaulieu in Gdansk, Elisa Anzolin in Milan)

((philippe.leroybeaulieu@thomsonreuters.com))