The installer of fiber optics and Linky meters saw its share drop by 70%. This follows the decision of the firm EY not to certify the accounts of Solutions 30. The company has been under fire for several months by the Muddy Waters fund which denounces irregularities in the accounts.
Nothing is going well for Solutions 30. The group saw its share price drop by 70% when the listing resumed. A foreseeable fall following the declaration of the firm EY (Ernst & Young) Luxembourg in the annual report of the specialist in the installation of Linky meters and the installation of optical fiber to be “unable to express an opinion on accounts “. The audit company justifies its position by explaining that the group has not communicated certain necessary information. As a result, EY Luxembourg “has concluded that any impact on the consolidated financial statements of undetected anomalies could be both material and diffuse”.
Raising questions, EY gave information to another player in this case, the Muddy Waters Fund. A specialist in short selling, he has been exerting pressure on Solutions 30 for several months by denouncing “irregularities” on the accounts. He also does not hesitate to talk about fraud and money laundering. In a statement, the fund draws an analogy to adultery in this case and says “it is obvious that what is behind the doors that EY could not open is highly problematic for the company.”
Solutions 30 said it “strongly disagrees” with EY’s decision and it is likely that the company will look for another auditor. In addition, it announced that it had referred the matter to the president of the Bobigny commercial court in order to appoint a conciliator, in particular for its relations with partners and customers. An action that had no effect in reassuring investors, quite the contrary. As a result, in the early hours of trading, the market valuation of Solutions 30 lost 760 million euros.