June 4, 2014 / 12:35 PM / 4 years ago

NQ Mobile says committee finds no evidence of fraud

June 4 (Reuters) - Chinese mobile security software maker NQ Mobile Inc said a special committee had found no evidence of fraud, as alleged by short-seller Muddy Waters Research Group.

NQ Mobile’s shares rose about 30 percent in premarket trading.

NQ Mobile also said the committee also found no evidence that the company’s revenues and cash balances were inconsistent with public disclosures.

Muddy Waters called NQ Mobile a “massive fraud” in October, a charge NQ Mobile rejected as false.

Short-sellers make money when the stock price of a company drops. They sell borrowed shares in the hope of buying them back at a lower price, returning them to the lender, and gaining from the difference. (Reporting by Soham Chatterjee in Bangalore; Editing by Kirti Pandey)

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