Block & Leviton LLP Investigates 21Vianet Group, Inc. After The Company Faces Fraud Allegations

BOSTON, Sept. 11, 2014 /PRNewswire/ -- Shares of 21Vianet Group, Inc. ("21Vianet" or the "Company") (NASDAQ:  VNET) have plunged precipitously on news that the Company has been accused of fraudulent activity by the independent research organization the Trinity Research Group ("Trinity"). 

On September 10, 2014, Trinity issued a report alleging that 21Vianet greatly exaggerated its financial performance and was essentially operating a complicated Ponzi scheme. The report claims that: 21Vianet overstated its IDC network by at least 14.5% and its utilization rates by at least 11.1 percentage points; the Company claims that it operated 60 partnered data centers, but concealed the fact that 31 of these partnerships had been terminated; and the Company misrepresented the financials of a number of companies it has recently acquired in its SEC filings based on information submitted to Chinese authorities.

Upon absorbing the news, shares of 21Vianet plummeted in the market, falling from a closing price of $21.88 on September 9, 2014, to intra-day lows of $15.75 on September 11, 2014, a drop of approximately 28%.  At times on September 10, 2014, trading in 21Vianet was halted due to excessive volatility.  Moreover, there is speculation in the market that the news leaked in advance of the official Trinity report, as the stock price further plummeted on September 9, 2014, by approximately $6 per share.  Company denials of the allegations have had no effect on slowing the collapse of the price of the stock.

Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread any potential accounting violations extend and whether any insiders at the Company personally profited by the alleged accounting improprieties. 

If you purchased 21Vianet securities and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or at [email protected].  Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws.  The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.

This notice may constitute attorney advertising. 

Contact:  
BLOCK & LEVITON LLP
Steven P. Harte
(617) 398-5600
[email protected]

SOURCE Block & Leviton LLP