NQ Mobile +10.9% after responding to Muddy Waters report

|About: NQ Mobile Inc. (NQ)|By:, SA News Editor

In response to a July 7 Muddy Waters report (.pdf) leveling fresh accusations against NQ Mobile, NQ vouches for the integrity of its Special Committee investigation, declares it has disclosed material info "in a timely manner," and states management has been "subject to a trading blackout" since shortly after MW's Oct. '13 report came out.

In the July 7 report, MW says it suspects NQ held back its July 3 announcement (led shares to fall 32%) to give insiders a chance to dump shares, and that the company's "prior statements and actions make clear that it has understood for some time that PwC will never issue an unqualified audit opinion for 2013."

MW also believes NQ's assertion that PwC wants to expand the scope of its audit is "merely a pretext for NQ to change auditors." It thinks "NQ has likely already decided to fire PwC, or PwC has already informed NQ it is resigning."

Shares still -69% YTD.