{
  "docId": "019dd923-622c-750b-8b96-3c5911c95e3b",
  "docSlug": "2e1719f8e47d",
  "documentTitle": "NQ Mobile (NQ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-12-19 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 1,
  "pageCount": 9,
  "prevPage": null,
  "nextPage": 2,
  "slideType": "shareholder-letter",
  "function": "state_demand",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "This is a formal letter from a short-seller to a company's board of directors.",
  "elementsJson": [
    "paragraph",
    "logo_grid"
  ],
  "metadataConfidence": 1,
  "imagePath": "https://imgproxy.kitesheet.com/j0mWwnhP_RdqLpWqELpsyK_7kQsl2QqrApMu9_saos0/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy8yZTE3MTlmOGU0N2QvcDAwMS5wbmc",
  "slideHref": "/slides/019dd923-622c-750b-8b96-3c5911c95e3b/1",
  "deckHref": "/decks/019dd923-622c-750b-8b96-3c5911c95e3b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-3c5911c95e3b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-3c5911c95e3b#slide-1",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Muddy Waters, LLC hereby offers to engage, at our own expense, an independent and qualified accounting firm to evaluate the independent committee's investigation into whether NQ Mobile is fraud.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-f5d0-745c-bec0-3b623e5800f9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.706,
        "x": 0.147,
        "y": 0.475
      },
      "kind": "paragraph",
      "text": "Muddy Waters, LLC hereby offers to engage, at our own expense, an independent and qualified accounting firm to evaluate the independent committee's investigation into whether NQ Mobile is a fraud.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "11e387bc-db3e-4f00-b1bd-b3e5c7124d03",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.706,
        "x": 0.147,
        "y": 0.705
      },
      "kind": "paragraph",
      "text": "The history of independent committee investigations into allegations of fraud against China issuers is a shameful one, and has cost investors billions of dollars in losses. After many previous investigations concluded short-sellers' claims of fraud were baseless, investors who took comfort in those conclusions went on to suffer near total losses when the stock and bond prices subsequently collapsed.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c58ff488-2789-479d-9006-36b454247d3e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.706,
        "x": 0.147,
        "y": 0.545
      },
      "kind": "paragraph",
      "text": "It is necessary and reasonable for the independent committee to have a qualified party evaluate the credibility of the investigation. While NQ has pledged to be highly transparent, the independent committee's retention of a law firm to oversee the investigation cloaks the entire investigation in attorney-client privilege. The law is clear that directors who are not complicit in a fraud (i.e., they have themselves been defrauded by a company's management) are not subject to liability. Thus, there is no good faith reason to have this investigation shrouded by attorney-client privilege.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c6240189-a621-49ed-bfcc-f785278bb286",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.706,
        "x": 0.147,
        "y": 0.815
      },
      "kind": "paragraph",
      "text": "We cite eight examples in Part II of this letter of independent committees' apparent dysfunction and resulting flawed investigations of fraud allegations made against China companies. Each of these independent committee reports exonerated the companies of wrongdoing, but were followed by substantial investor losses, and often regulatory action. Those companies are: Sino-Forest, China Agritech, ChinaCast Education, China",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e15a3702-3dc8-42bd-9f5e-01fbf82f6632",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.42,
        "x": 0.147,
        "y": 0.443
      },
      "kind": "title",
      "text": "Part I: Our Offer to NQ's Independent Committee",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c2193ea8-a547-44a4-8ffc-091e4f6ab292",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 1,
      "from": 1,
      "beatId": "ad05cb21-65f1-4fd7-8648-7c73c81a0227",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Situation & Context",
      "beatSlug": "consultants-gambit-situation-context",
      "evidence": "Part I: Our Offer to NQ's Independent Committee",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Setup",
      "parentBeatSlug": "setup"
    }
  ],
  "loops": [],
  "imagePathAlt": "https://imgproxy.kitesheet.com/8_1AfLmyKkoKmqNB6LyIYUrD8mS7AN-PUdCP0Db675o/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy8yZTE3MTlmOGU0N2QvcDAwMS5qcGc",
  "thumbSrc": "https://imgproxy.kitesheet.com/34J3Z1tg0b_OFc35AZ6Qud8NmrI0MrzdiAGh5HdYUoQ/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy8yZTE3MTlmOGU0N2QvcDAwMS5wbmc",
  "thumbSrcAlt": "https://imgproxy.kitesheet.com/VfbgO9CM66sRWvAxvqogZsxDBBSG7uJTwqWVLTZuLYs/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy8yZTE3MTlmOGU0N2QvcDAwMS5qcGc"
}