NQ Mobile Inc (NQ) saw its shares drop over 33% on the last day of trading in the prior week after news about Board changes, and audit ‘issues’ spooked investors. Muddy Waters, which holds a highly publicized negative view of the company responded to the news last night, suggesting the company sold shares illegally over the long Holiday weekend. NQ Mobile has responded to the latest development with the following statement.
NQ Mobile Statement
Today’s IR update marks the beginning of a new chapter for NQ Mobile Inc (ADR) (NYSE:NQ). We recognize that the past three months have marked a sequence of unintended disappointments around the timing of events and related communications. From a communications standpoint, the Company has been hindered in our capacity to substantively provide continuous updates to investors over the past several months as the most significant and meaningful updates that matter to the capital markets have centered around both the completion and findings of the independent investigation led by the Special Committee and the pending annual financial audit led by our independent auditors. An important element to stress is the autonomous nature of these independent processes; which explains why we were limited in our ability to communicate with the markets.