U.S. securities regulators have charged a Chinese software company with violating disclosure rules by failing to file accurate financial reports. Longtop Financial Technologies Ltd., whose shares no longer trade on the New York Stock Exchange, could face having its securities suspended or permanently revoked.
The Securities and Exchange Commission announced the charges Thursday against Longtop, one of several Chinese companies with possible accounting problems whose shares trade in the U.S. Longtop shares were stripped from trading on the NYSE in August but continue to trade in the over-the-counter market. An administrative law judge at the SEC will decide the case.
The SEC said Longtop failed to file a report for its fiscal year ended March 31. Its auditor has cast doubt on annual reports filed for 2008-10, the agency said.