The Solutions 30 case shakes the Paris Stock Exchange



New episode in the Solutions 30 soap opera. This company – known in particular for the installation of fiber networks or Linky meters – had requested the suspension of its stock market listing on May 10, without the reason for this request being made public . Listing resumed on Monday, May 25 but was interrupted once again, after the stock fell 71% at midday.

What happened ? Between May 10 and May 25, the reason for the suspension appeared. In the middle of the month, the Autorité des marchés financiers indicated that Solutions 30 had not yet published its 2020 annual financial report, certified by an auditor. However, the regulations impose this publication on it four months after the end of the last financial year.

Non-certified accounts

Finally, Sunday May 23, Solutions 30 published accounts… not certified. The auditor for the company, EY Luxembourg, said in “The inability to express an audit opinion”. Solutions 30 “Did not provide us with certain information necessary for the performance of our audit”, EY explained.

Faced with the position of its auditor, Solutions 30 expressed its “Deep disagreement”. In a press release, she claims that “ his teams have responded diligently to the auditor’s requests for documents and information and communicated all the information available to the Group “. The company has published its accounts and announced the resumption of its listing for Monday, May 25 in the morning. Which at the opening led to massive sales of the title.

Charges of “money laundering” and “fraud”

This new fall comes in a tense context for Solutions 30. Little known to the general public, the company specializes in the installation and maintenance of technological equipment. Based in Luxembourg, it is listed among the 120 largest companies on the Paris Stock Exchange (SBF 120) and claims for 2020 a turnover of 819 million euros.

However, the company has been in turmoil since the publication of an anonymous report in December 2020. It accuses the company of “Money laundering” and of “Fraud”. Among other things, the report accuses the company of maintaining links with the mafia, via a former manager of an accounting firm based in Luxembourg, who worked with Solutions 30.

Short seller

The day after its publication, the report was relayed by an influential player in the world of finance: the Muddy Waters fund. This one is specialized in the “short sale”: it bets on the fall of the price of certain actions. In this case, he had bet on a drop in Solutions 30. This did not fail to happen: a few days after the publication of the report, the share price had been halved.

Solutions 30 rejects these accusations. She lodged a complaint with the National Financial Prosecutor’s Office and seized the Financial Markets Authority in mid-December. At the end of January, the company announced a new libel complaint against Muddy Waters. At the same time, she mandated the firm Deloitte and Didier Kling to shed light on the case.

Appointment of a conciliator

In April, Deloitte reported at the start of the second quarter that it had “No element identified to corroborate the allegations of money laundering, in connection with organized crime”. Shortly after, at the end of April, Solutions 30 published consolidated, but unaudited, accounts.

Muddy Waters for his part continues to maintain the accusations. Its leader, Carson Block, said in an interview with the Figaro May 24: ” Their investigations were limited to a perimeter defined by the company. They didn’t look everywhere “.

According to AFP, Solutions 30 asked the commercial court of Bobigny “The appointment of a conciliator to assist him” and answer the questions of its partners, customers or suppliers. The company would examine “The possibility of appointing a new company auditor” and is scheduled to hold its annual general meeting of shareholders on June 30.

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