Boston, MA 06/04/2014 (wallstreetpr) – NQ Mobile Inc (ADR) (NYSE:NQ) was charged with the fraud allegations by short seller Muddy Waters Research Group in last October. The company’s board of directors has then formed an independent special committee to look after the matter. A committee was formed of four independent directors of the company. The investigative team has completed the review and has given a clean chit to NQ Mobile. Muddy Waters has seriously alleged the company with the term of “massive fraud” in October.
The area of investigation
The investigation team was headed by the partners in the U.S. They look after the teams that work in both the countries the U.S. and China. The so-called committee made a thorough investigation based on the business activities of NQ Mobile Inc (ADR) (NYSE:NQ). It conducted a deep analysis of the financial records so as to verify the allegations made by Muddy waters in October 2013. It was a prompt response to the allegations made by the Muddy Waters.
The results and findings
NQ Mobile Inc (ADR) (NYSE:NQ) has all the reasons to smile after the reports of the committee that clearly states that the study had found no evidence of fraud. All the allegations of Muddy Waters Research Group are baseless and false. The committee clearly stated that there was no evidence that NQ mobile’s cash balances and revenues were inconsistent with public disclosures. All the cash balances were verifiable and in terms with the public disclosures.
The investigation committee didn’t consider it important to evaluate judgments by research group about the soundness of NQ Mobile Inc (ADR) (NYSE:NQ)’s business strategy. However, the committee suggested the company with some measures to enhance its internal controls. The Board of Directors have accepted the recommendations and will be implemented soon by the management.
