Hall of Shame
Orient Paper (ONP US)
In Jun 2010, Muddy Waters published a report accusing the company of misappropriating $30m, overstating revenue, inventory turnover, gross profit margin and overvaluing its assets. The report showed that the company's top customers were too small to afford the reported sales figures, and the company's production facility has much less logistical activity than its output would suggest.
In Mar 2011, the company announced that its annual report for the fiscal years 2008 and 2009 are not considered to be audited because their previous auditor, Davis Accounting Group, had its license revoked. The financial statements were later re-audited by BDO.
The company settled a class action complaint for $2m in Apr 2013.
 Muddy Waters: Orient Paper Inc., 28 Jun 2010
 Orient Paper: Form 8-K, 23 Mar 2011
 US District Court: Legal Document, 29 Apr 2013
Orient Paper: Annual Report 2010; Annual Report 2011