HQ Sustainable Maritime Industries (HQSM US)
It was alleged that HQSM provided false information to the external auditor as part of a fraudulent scheme to inflate HQSM’s key financial metrics, including revenue and cash on hand. It was alleged that when the Company’s auditor eventually discovered evidence of misconduct, Lead Plaintiff alleged that HQSM and its current/former executives quashed attempts by the auditor and the Company’s own Audit Committee to investigate and then, according to a formal finding by the NYSE Amex Stock Exchange (formerly the American Stock Exchange), they lied to regulators about their efforts to block such an independent investigation. Ultimately, the Exchange delisted HQSM.
2009 OPM looked normal at 15%, but RoPA elevated at 70%
US District Court: Legal Document
, 28 Sep 2012
HQSM: Annual Report 2008
; Quarterly Report Sep 2010