NEW YORK (TheStreet) -- Shares of NQ Mobile Inc. (NQ) are up 17.74% to $13.14 on Wednesday, after the mobile Internet services provider announced an independent investigation into fraud charges made against the company, have found no evidence of misconduct.
In October 2013, the research firm Muddy Waters issued a report in which it referred to NQ Mobile as "a massive fraud."
"At least 72% of NQ's purported 2012 China security revenue is fictitious," Muddy Waters said.
The firm accused NQ of creating spyware that does not protect a user's phone from cyber-attacks.
NQ Mobile said the investigation is almost at an end and it plans to release the full details of the investigation when completed.
TheStreet Ratings team rates NQ MOBILE INC -ADR as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NQ MOBILE INC -ADR (NQ) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."