The allegation was that Rino didn't have as many customer contracts as it had claimed. The company's CEO soon told auditors that the charge was partly true, admitting that two customer contracts had not been signed. Rino's CEO also said there might be problems with 20% to 40% of its other customer contracts. The stock was delisted from the Nasdaq as a result.

Shortly after Muddy Waters published a story on March 2 titled "CCME: Irrefutable Evidence of Fraud," China MediaExpress ( CCME) announced that its auditor and CFO resigned. On Monday, China MediaExpress announced that the Nasdaq notified the company that it is "exercising its discretionary authority" to suspend trading in the stock on April 12.

On the other hand, Orient Paper ( ONP), Muddy Waters' first target, ultimately determined its accounting was clean after a long investigation into accusations of fraud and misappropriation. However, Orient Paper on March 23 disclosed that its 2008 financial results were audited by a firm that didn't have an accounting license.

-- Written by Robert Holmes in Boston.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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