China-based Cloopen Group avoids fine in SEC accounting fraud case

A China-based technology company won’t pay a fine in settling with the Securities and Exchange Commission (SEC) over an alleged accounting fraud scheme perpetrated by two of its former senior managers.

Cloopen Group Holding, a provider of cloud communications products and services, dodged a potential penalty from the SEC for violations that included running afoul of reporting, recordkeeping, and internal control provisions of the federal securities laws, the agency announced Tuesday.

In October, Cloopen announced it received its final delisting determination from the New York Stock Exchange (NYSE) after failing to timely file certain of its annual reports for years impacted by the alleged fraud scheme.