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Longtop Financial Technologies Group Ltd. (LGFTY US)

Year: 2011

Longtop Financial Technologies Group (LFT) listed on the New York Stock Exchange (NYSE) in 2007. In April 2011, short-seller Citron Research published a report alleging that LFT was a fraud that was likely keeping its costs off balance sheet. That same month, short-seller Bronte Capital waded in to be followed in May by due diligence researcher OLP Global. These reports caused the company's share price to collapse. LFT initially refuted the allegations but then on 18 May 2011, announced a delay in the release of its FY11 results and a trading suspension. On 23 May, Deloitte resigned following obstruction in its audit. LFT had been faking profits and hiding the evidence in fabricated cash balances. 

Last updated November 2021

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