NQ Mobile Inc (ADR) (NYSE:NQ) Rebounds
A law firm based in Boston, Block & Leviton that represents investors across the country has filed a class-action lawsuit against NQ Mobile Inc (ADR) (NYSE:NQ) and some of its officers & underwriters. Currently, the case is pending in New York’s Southern District.
This lawsuit alleges that the company made misleading and false statements & omissions with reference to its internal financial-controls, accounting, its financial condition and its products. The allegations include the claims that NQ Mobile Inc (ADR) (NYSE:NQ)’s Antivirus 7.0 platform is not safe for consumer use. The other allegation was that at least 72 percent of the company’s security revenue is completely fictitious.
Last week, Muddy Waters LLC founder Carson Block wrote that investors should be selling NQ Mobile Inc (ADR) (NYSE:NQ) as the company had misrepresented cash balances and inflated revenue. He said that this company will also go the Sino-Forest Corp way. Last year, Sino-Forest, the Canada-listed company had filed for bankruptcy-protection after a claim from Muddy Waters, that it had exaggerated revenue.
All these allegations were denied by NQ Mobile Inc (ADR) (NYSE:NQ). The company held a 2-hour long conference call with analysts & investors on 25 October. In this call, the company gave a detailed break-up of its financial statements and also answered questions about the accusations that Block had aimed at them. The Vice-President, capital markets at NQ Mobile Inc (ADR) (NYSE:NQ), Matt Mathison said that the company welcomes any 3rd party to check their cash and that the facts and truth are on their side.
In Tuesday’s trading, NQ Mobile Inc (ADR) (NYSE:NQ) rose by 25.11%. The opening price of the shares was $9.82, which climbed to an intraday high of $12.19 and dipped to a close of $11.01. Approximately 28.36 million shares were traded on Tuesday while an average volume of 7.09 million shares were traded over a 30 day period.