Updated from 10:59 a.m. with 21Vianet statement and stock price information.
NEW YORK (TheStreet) -- Shares of 21Vianet Group (VNET) plunged more than 20% to hit a 52-week low of $14.23 in morning trading Wednesday as fraud allegations sent the stock lower.
Trinity Research published a 121-page report Wednesday in which it claimed the Chinese Internet data center services provider has committed fraud via fabricated SEC financial statements and illegal activities conducted in China. Trinity presented evidence including Chinese regulatory and State Administration for Industry and Commerce filings, photos of so-called "ghost offices" and "ghost acquisitions," original Chinese legal documents, and findings from in-person visits to all 72 of 21Vianet's data centers.
Trinity proposed that the fraud, coupled with 21Vianet's RMB3 billion in debt, would bring the stock down to zero and would cause the stock to be de-listed in the near future.
21Vianet issued the following statement early Wednesday afternoon in response to the allegations:
"21Vianet believes that the allegations made contain numerous errors, unsupported speculation and malicious interpretations of events. 21Vianet is committed to providing more detailed response to the allegations promptly and to rebutting false claims that attempt to undermine confidence in its business, financial condition and results of operations.
21Vianet remains focused on its business vision and strategy to become a leading Internet infrastructure service provider in China. 21Vianet intends to take all appropriate legal actions to defend itself against these malicious allegations and to protect the interest of its shareholders."
