Home Stocks NQ Mobile Inc (NQ) Responds to Muddy Waters

NQ Mobile Inc (NQ) Responds to Muddy Waters

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The war continues between NQ Mobile Inc (ADR) (NYSE:NQ) and Muddy Waters – NQ Mobile has just sent the following statement.

BEIJING and DALLAS, July 9, 2014 – NQ Mobile Inc (ADR) (NYSE:NQ) (“NQ Mobile” or the “Company”), a leading global provider of mobile Internet services, today responded to Muddy Waters’ report dated July 7, 2014. The Company fully respects the right of any third party to express its opinion but reminds investors that facts are facts.

Facts about NQ Mobile’s investigation

Here are the facts:

The independent investigation was overseen by a Special Committee of independent directors, and conducted by two highly respected firms with well-established reputations for integrity, Shearman & Sterling LLP, and Deloitte & Touche Financial Advisory Services Limited. It did not find any evidence that the Company had engaged in the fraudulent conduct alleged by Muddy Waters.

The Company has disclosed material information in a timely manner and in compliance with Securities and Exchange Commission (SEC) regulations, including information related to the stepping down of its Audit Committee Chair and the appointment of new independent directors, including a new Audit Committee Chair. The results of the independent investigation were disclosed by the Company as soon as practical after the Special Committee concluded its work

Management has been subject to a trading blackout since shortly after the initial allegations published by Muddy Waters on October 24, 2013.  On November 12, 2013, the Company announced that senior managers would purchase up to an aggregate of $3 million worth of the Company’s American depositary shares (ADSs) within six months from November 15, 2013, pursuant and subject to the restrictions of, and consistent with, applicable laws and the Company’s securities trading policy.  Because of those restrictions, senior managers have not been, so far, able to deliver on their promise.  However, they remain fully committed to doing so as soon as legally possible.

The Company is fully committed to the highest standard of corporate governance, as demonstrated by the recent additions to its board of directors, as well as transparency and fair and timely disclosure in full compliance with SEC regulations.

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