Perfect World Moves Higher after Response to Fraud Claims
Shares of Chinese online game developer Perfect World (NASDAQ: PWRD) are seeing much strength during Tuesday's trading session after the company responded to fraud claims that surfaced yesterday.
Perfect World provided a response this morning to recent anonymous allegations posted on certain Chinese language websites. The allegations followed several extortion activities attempting to extort money from the Company and Mr. Chi, and malicious and false allegations reported to certain local government authorities in China.
A Chinese financial Web site reported yesterday that Perfect World Chairman and CEO Yufeng Chi self-funded $3.14 million "in the name of others that can be manipulated to borrow the Beijing Network Technology Co., Ltd. Chi Chu," and that Yufeng's relationship with Chi Chu has not been publicly disclosed.
Chi Yufeng, and "Perfect World" has never been to the U.S. SEC, the board of directors of listed companies and public disclosure of all the shareholders and the "wisdom beads network" relationship, and deliberately concealed "Chi Chu network" rights relationship, according to the Web site.
The company believes these allegations are inaccurate, defamatory and malicious, and have seriously affected the reputation and image of Perfect World, and is taking legal actions against those involved. The independent audit committee of the Company's Board of Directors has been working to thoroughly review these allegations and will engage an independent legal counsel to assist with its review.
Currently, shares of Perfect World are trading 17% higher at $10.34.
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