14 DAY TRIAL // National shareholder litigation firm Ryan & Maniskas has announced the launch of an investigation into mobile security solutions provider NQ Mobile.
Ryan & Maniskas’ investigation is based on a recent report from Muddy Waters Research, which claims that the company has been misleading investors and misrepresenting the efficiency of its products.
According to the study, NQ Mobile’s market share in China is 1.5%, not 55% as the company claims. Muddy Waters has found that at least 72% of the security firm’s Chinese revenue is actually fictitious.
Furthermore, it’s believed that NQ Mobile’s Antivirus 7.0 platform is “unsafe for customer use.”
A few hours after Muddy Waters released its report, on October 24, the company’s shares dropped by almost 50%. On October 25, NQ Mobile’s board of directors formed a special committee to look into the accusations.
In a statement released on the same day, NQ Mobile representatives say the accusations are false and inaccurate.