In November 2011, Muddy Waters, who is an U.S. short-seller fund, accused Focus Media of overstating the size of its company. Focus Media’s stock price dropped sharply at first but then rallied as the company countered the attacks. In March 2012, nevertheless, the U.S. Securities and Exchange Commission launched its own investigation and forced Focus Media to amend some of its filings.
In the subsequent months, several Chinese companies followed suit and delisted from the NASDAQ. In mid-2014, the PE firms in the association needed to cash out of their equity positions, and Jiang faced the tough choice of what to do.
Publication Date: 12/19/2014
This is just an excerpt. This case is about Finance
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