Shares of Verint Systems Inc. /zigman2/quotes/209184374/composite VRNT +1.20% sank 9.7% in active afternoon trade, after short seller Spruce Point Capital Management said it sees downside to $17 to $25 for the stock, which is 55% to 70% below current levels. Trading volume was 2.4 million shares, compared with the full-day average of about 585,000 shares. Spruce said its bearish view on what it called a call-center software company is because Verint has "fallen far behind the industry's evolving technological standards" and is using an "aggressive" acquisition strategy and "dubious" accounting to make up for slow growth. Spruce also said the company's proxy battle with shareholder Neuberger Berman reveals "atrocious" governance. Verint responded by saying, "The self-serving short seller report disseminated today is inaccurate and deliberately misleading, and is intended to destroy shareholder value." Wedbush analyst Dan Ives reiterated his outperform rating on Verint, saying "we strongly disagree with all the issues raised." He said the selloff on the short-seller's report has created a "golden buying opportunity." The stock has still rallied 30.5% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.64% has gained 14.8%.