Plus500 just suspended its shares on London’s junior AIM market after a further 28% price drop on Friday.
The latest collapse comes after hedge fund Cable Car Capital wrote in a blog post that it was shorting the company, questioning what it said were “host of red flags.” Cable Car Capital says Plus500 shares are worth just 76 pence, compared to their suspended price of 275 pence.
In a post on its website, Cable Car Capital alleges there are a number of “unanswered questions” about the business.
Among its main concerns is the restatement of 2013 revenues at Plus500’s UK operation, which saw them reduced by a whopping 80%.
Sources close to Plus500 told Business Insider that this restatement was to do with a change in accounting practices that changed the way the UK business paid and was charged for services provided by its Israeli parent company.
Plus500 declined to comment.
A statement is due from the company soon and we’ll update this page as soon as we have more.