Trinity Research Group Releases Second Report On 21Vianet Group Inc, Detailing 'Undisclosed Insider Activities'
Trinity Research Group has just released its second research report on 21Vianet Group Inc (NASDAQ: VNET), detailing its account of "undisclosed insider activities."
Key quotes from the report include:
- "VNET co-founders Chen Sheng and Zhang Jun (CEO and former COO) directly and indirectly control numerous related parties that have not been disclosed to the SEC. We count 16 such companies in the SAIC database."
- "Eight (8) members of VNET’s executive team and one (1) former employee are legal representatives, directors, managers or supervisors of these companies. None of these relationships have been disclosed to the SEC."
- "Some of these companies have engaged in undisclosed transactions with VNET or VNET’s disclosed related parties."
- "VNET co-founders indirectly control and therefore personally benefit from a related party that competes with VNET. This violates the non-compete clause of any standard employment contract enforced as a governance best practice."
- "All these insider activities put into question the credibility of VNET’s management and its board of directors, who we believe are not upholding their fiduciary duties."
- "We urge the SEC and E&Y, VNET’s independent auditor, to investigate these activities immediately."
The full report can be seen here.
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