Audit Dispute Sends Shares of Muddy Waters Target Into Tailspin
- Stock crashes after two-week suspension amid row with auditor
- Ernst & Young unable to express an opinion on 2020 accounts
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The disarray at Solutions 30 SE deepened as the European technology-services company, first targeted in 2019 by activist short seller Muddy Waters Capital LLC, said its auditor couldn’t sign off on its 2020 accounts.
The company, which counts Telecom Italia SpA among its customers, saw much of its 1.1 billion-euro ($1.4 billion) market value wiped out Monday as the shares began trading again following a two-week halt. Luxembourg-based Solutions 30 published its own unaudited accounts over the weekend after Ernst & Young LLP said it hadn’t been given the information necessary to perform the audit itself.