Chinese chip company Montage Technology listed on the NASDAQ in September 2013. In February 2014, the company was accused by short-seller Gravity Research of faking a large portion of its revenue though an undisclosed related party in Hong Kong. This prompted a 25% decline in the company's share price. The following month, in March, the company announced that it was being acquired, causing its share price to rebound. A few days later, short-seller Aristides Capital published a report with similar accusations to Gravity Research. In October 2014, the audit committee completed its review and concluded that the allegations were unfounded. The acquisition proceeded in November, valuing Montage's equity at US$693m. The fraud allegations against Montage remain unproven given that there were no management or auditor resignations.

Last updated March 2022

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