Textura Plunges After Citron Research Makes Fraud AllegationsNick Turner
Textura Corp., a seller of online invoicing and other services to the construction industry, tumbled 17 percent after Citron Research alleged the company’s initial public offering relied on fraudulent tactics.
The shares fell to $31.30 at the close in New York, marking a record one-day decline. Before today, the stock had climbed 152 percent since its IPO in June.
Citron Research, a stock commentary site, posted a report saying the company would have been insolvent if not for the IPO and that it misled the U.S. Securities and Exchange Commission about the health of the business. Textura has amassed $180 million in losses over the past 10 years and its finances are getting worse, according to Citron, which said the stock is worth less than $4.
After the shares plunged today, Textura released a statement disputing the allegations.
“Textura finds this report to include a variety of inaccurate and misleading statements and gross distortions,” the Deerfield, Illinois-based company said in the statement. “Textura completely rejects any allegation of fraud, collusion or deception in Textura’s IPO or SEC filings.”