Chinese online financial data provider China Finance Online listed on the NASDAQ in 2004. After a tenfold increase in the company's share price, short-seller Citron Research issued a report in September 2007 claiming that it was a bubble. Allegedly, management was executing poorly and operated in a market with limited barriers to entry. Surely enough, its share price corrected over the following year. Eight years later, in 2015, short-seller GeoInvesting published a report which alleged that the company's CEO had suddenly resigned from key Chinese VIEs but this had not been made public. A subsequent class action lawsuit proved this was true and also that the company failed to disclose that the CEO had an indirect equity interest in Langfang Developer at the time of the company’s investment. The company settled without admitting any wrong doing.

Last updated March 2022

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