Chinese internet content and application delivery firm ChinaCache International Holdings Ltd (NASDAQ: CCIH), shares were crashing Friday after the company announced that it and its former CEO and Chairman Song Wang are investigated in connection with bribery allegations — and that Song has resigned from his positions and has been taken into custody.
ChinaCache shares were down 16.24 percent at 92 cents at the time of publication Friday.
The government prosecutors' office in Beijing is investigating ChinaCache and Song, the company said.
The board has appointed Bin Liu as the company's acting CEO effective Friday.
The legal proceedings are still at an early stage, and ChinaCache is unable to assess the likely outcomes, the company said.
"The independent members of the Board plan to launch an internal investigation of the bribery-related allegations and to engage outside advisers to assist the independent members of the Board in conducting such investigation as soon as practicable," Jean Xiaohong Kou, a director and senior vice president at ChicaCache, said in a statement.
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