he U.S. Securities and Exchange Commission said on Wednesday that Subaye Inc agreed to settle claims the China-based online services provider deceived auditors and misled investors about its business.
The settlement, which the agency said includes injunctions but no money, was announced as the SEC filed a lawsuit in U.S. District Court in New York against Subaye and its former chief financial officer. Subaye is neither admitting nor denying the allegations, the SEC said.
The lawsuit marked the latest action by the federal securities regulator related to Chinese companies listed on U.S. stock exchanges following a string of accounting scandals in 2010 and 2011.
The lawsuit alleged the company and Crane engaged in a "fraudulent scheme" in which they falsely promoted the company as having millions in dollars in revenue and focused on providing media or Internet services to Chinese businesses.