Shares of Tangoe Inc (TNGO.O) fell as much as 24 percent after a research group charged the telecommunications software company of misrepresenting facts about its growth rate and called for a probe by the U.S. Securities and Exchange Commission.
"After doing a deep dive into Tangoe's financials, it is our belief that the company has significantly misrepresented its de novo growth rate, while demonstrating many of the telltale shenanigans and behavior that tends to be a harbinger for blow ups," Copperfield Research said.
Copperfield Research is the pseudonym of a research team focusing on equities.
The author of the Tangoe report, who holds a short position in the company's stock, said his report follows a similar one by online blog TheStreetSweeper.
Tangoe could not be immediately reached for comment.
Shares of the Orange, Connecticut-based company were down 12 percent at $14.90 in afternoon trading. The stock, which touched a nine-month low of $12.87 earlier, was the top percentage loser on the Nasdaq on Thursday.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Maju Samuel)