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PARIS, May 24 — Shares in Luxembourg-based IT company Solutions 30 plummeted by more than 60 per cent on the Paris stock exchange today after questions were raised about its accounts.
The stock had shed 64.47 per cent in value to €3.69 (RM18.70) a share in initial trading from its last quote on May 7.
On May 10, Solutions 30 asked market operator Euronext to suspend trading, which resumed intermittently today.
Yesterday, the company published its latest annual accounts, five days after the French market watchdog AMF ordered it to do so.
The accounts were not certified however, as the company’s auditor, EY, said it was not in a position to give an opinion.
EY said that Solutions 30 “did not provide us with access to certain information necessary to perform our audit.”
The company replied that it “strongly disagrees” with the auditor’s reasoning.
Solutions 30 is locked in a struggle with US activist investment fund Muddy Waters, whose director Carson Block has bet that the shares will fall in value via a process known as short-selling.
The company’s latest troubles began in December when an anonymous 114-page report accused it of money laundering and fraud, accusations that were picked up by Muddy Waters.
In April, Solutions 30 published an audit by Deloitte that appeared to clear it of those allegations.
However Block has maintained that Deloitte did not carry out a full audit, and has drawn comparisons between Solutions 30 and Wirecard, a high-profile German digital payments company that collapsed last year after directors acknowledged that €1.9 billion in supposed assets did not exist. — AFP
Source: Malay Mail
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