Tangoe Inc.'s (NASDAQ:TNGO) small cap stock fell on Thursday after allegations arose that the telecom company purposefully skewed facts about how fast it is growing.
The claims were made by a research group, which stated Tangoe should be investigated by the Securities and Exchange Commission.
"After doing a deep dive into Tangoe's financials, it is our belief that the company has significantly misrepresented its de novo growth rate, while demonstrating many of the telltale shenanigans and behavior that tends to be a harbinger for blow ups," Copperfield Research said.
The author of the report commented that the report does have a similar tone as online blog TheStreetSweeper, however other Tangoe officials could not be reached by Reuters for comment.
The claims had a major effect on the Connecticut-based company's stock, which closed 6 percent lower, or $1.03, at $15.97. At one point in afternoon trading, shares hit a nine-month low of $12.87, making it the highest percentage lose on the Nasdaq. The stock's 52-week high remains at $23.05, while its low is $10.51.