Independent research firm Trinity Research Group is accusing the Chinese internet company of being a Ponzi scheme in a 121-page report.
The firm claims it investigated 21Vianet for six months using “an expanded team of local accountants, lawyers, telecom and Internet industry executives/insiders and VNET customers, partners and former employees.”
Trinity says that 21Vianet committed accounting and securities fraud. The firm added that the company’s management falsely promised a substantial cloud revenue and a telecom license to pump the stock.
21Vianet stock fell as much as 30% on Wednesday. VNET is now down 8% to $20.13.
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