Focus Media listed on the NASDAQ in 2005. In November 2011, short-seller Muddy Waters issued a report alleging that the company was overstating its operating metrics and that management was embezzling funds through acquisitions and disposals. In March 2012, the SEC launched an investigation. In August, Focus Media announced that it was going private. Later that same month, Bronte Capital joined the fray alleging that Focus Media was paying for companies before they had even been established. The company was taken private in May 2013 and then relisted on the Shenzhen stock exchange in June 2015. It paid US$55.6m in fines and settlements to the SEC and injured investors in September 2015. While the allegations surrounding embezzlement appear proven, those surrounding fake profits are not.

Last updated August 2021

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