Limbach (LMB) shares were edging lower in recent Tuesday trading after Spruce Point issued a report raising concerns about the company's accounting practices and initiated a short position in the company.

The investment firm said it has concerns over Limbach's "aggressive accounting practices," and how several board members have been linked to "troubled companies" that restated their results.

The report also pointed to slowing organic growth in Limbach's key Owner Direct Relationships segment and claimed that the company's adjusted earnings before interest, taxes, depreciation, and amortization and free cash flow were overstated by 13% and 200%, respectively, over the past 12 months.

Spruce Point also said it was concerned by Limbach's financial disclosures that are becoming "more opaque," and by how certain financial metrics are "liberally defined and overstated."

Limbach didn't immediately reply to MT Newswires' request for comment.

Price: 123.22, Change: -0.63, Percent Change: -0.50