NQ Mobile says committee finds no evidence of fraud, shares jump

Chinese mobile security software maker NQ Mobile Inc said an independent committee had found no evidence of fraud, as alleged by short-seller Muddy Waters Research Group. NQ Mobile's shares rose as much as 34 percent on Wednesday, after the company said the committee also found no evidence that its revenue and cash balances were inconsistent with public disclosures. Muddy Waters had called NQ Mobile a "massive fraud" in October, a charge the Chinese company rejected. The short-seller had said NQ Mobile's cash balances were "highly likely to not exist." Muddy Waters had also said that at least 72 percent of NQ Mobile's purported 2012 revenue from sales of its security products in China was fictitious, coming from a shell company called Yidatong that the short-seller alleged was controlled by the Chinese company.



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