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Consumer Discretionary

Wonder Auto Technology, Inc (WATG US)

Year: 2010

Automotive electronics parts manufacturer Wonder Auto listed in the US via a 2006 reverse merger. In September 2010, due diligence researcher OLP Global published a report which raised questions over the validity of an acquisition. This was followed by a March 2011 report which made more allegations over improper acquisitions. In February 2011, the company announced that FY08 and FY09 financials should not longer be relied upon owing to a cutoff error regarding timing of revenue. In March, it then announced that it would be unable to file its FY10 financials owing to this restatement plus an investigation into the claims raised in the reports. This led to the stock's suspension. When it resumed trading in September, it reopened 85% lower. In December, PwC resigned as issues raised by the investigation had not been fully addressed by management. The company went dark in September 2012. It is a confirmed fraud.

Last updated December 2021

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