Haeggquist & Eck, LLP has commenced an investigation into claims on behalf of purchasers of  NQ Mobile Inc. (NYSE: NQ) (“NQ or the “Company”) securities concerning potential violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by Company offices and directors during the period between May 5, 2011, through May 2, 2013 (the “Class Period.”)

Zeldes Haeggquist & Eck’s investigation concerns whether NQ issued materially false and misleading statements regarding the Company’s business and financial prospects during the Class Period and in connection with the Company’s May 5, 2011, initial public offering (“IPO”).

Founded in 2005 and headquartered in Beijing, PRC, NQ provides various mobile Internet services.  The company was formerly known as NetQin Mobile Inc. and changed its name to NQ Mobile Inc. in April 2012.

On May 5, 2011, NQ conducted its IPO of American Depositary Shares (NYSE: NQ).   The shares were priced at $11.50 per share.  Following the IPO, and during the Class Period, NQ share prices increased significantly, climbing to nearly $25 per share in October 2013.

Then, on October 24, 2013, equity research firm Muddy Waters LLC initiated coverage on NQ with a “Strong Sell” rating and a projected target price of less than $1.  Among other things, Muddy Waters’ research report states: (i) at least 72% of NQ’s reported $32.2 million in 2012 China security software revenue is fraudulent, NQ’s real security revenue was $2.5 million to $7.7 million; (ii) NQ’s largest customer is actually an empty shell company controlled by NQ; (iii) NQ’s real market share in China is only about 1.4%, versus the approximately 55% it reports; (iv) NQ’s international revenues are wildly overstated; and (v) the vast majority of the $127.9 million cash and investments NQ reported having as of December 31, 2012, is not actually in the Company’s accounts.

Upon the release of this information, on October 24, 2013, NQ shares declined 47% to $12.09 per share from $22.88 per share, on unusually heavy volume of 29.3 million shares traded.

To schedule your free initial consultation, contact us online or call (619) 342-8000 today!



Related Posts

Haeggquist & Eck Attorneys posing for picture

California Law Firm, Haeggquist & Eck, Work to Help Women in the Workplace Against Sexual Harassment

In this article by Law360, an all-too-common story is told about how women’s experiences are typically glossed over in the …

Read More

Haeggquist & Eck’s Attorney Jenna Rangel and Survivor Advocate Christy Heiskala are featured in KPBS News Story

Haeggquist & Eck’s Attorney Jenna Rangel and Survivor Advocate Christy Heiskala are featured in KPBS news story regarding how outside …

Read More
In the News Banner

Haeggquist & Eck Represents Detectives in Sexual Harassment Suit Against San Diego County Sherriff’s Department

Haeggquist & Eck Partner, Jenna Rangel, is proudly representing two former San Diego Sherriff’s Department detectives in a Sexual Harassment …

Read More
Translate »