Noble Group, an Asian company who trade in commodities have announced plans to commence legal action against unfamiliar Iceberg Research blog. Iceberg published reports relating to the accounting practices of the firm. Since such revelations, shares in the company have fallen up to 30%. In the wake of the legal action that has been announced however, shares were back up by 4%.
Proceedings will begin in Hong Kong today after the blog made claims that Noble has overstated profits whilst devaluing its debts. In February, the company was alleged to have used ‘accounting loopholes’, something which the firm deny and have labelled the accusations as “inaccurate, unreliable and misleading”. It is the view of Noble that a worker who was let-go in 2013 is responsible for the claims. Legal action is being taken today for conspiracy to harm the group.