UTime Stock Surges Over 64% After-Hours Amid Fraudulent Press Release Controversy
UTime Ltd. (NASDAQ:WTO) shares jumped 64.84% to $2.11 during after-hours trading on Thursday after the Chinese mobile device manufacturer clarified that unauthorized press releases claiming management changes were fraudulent.
Check out the current price of WTO stock here.
Stock Movement Highlights Market Volatility
According to the Benzinga Pro data, the Shenzhen-based company closed regular trading at $1.28, down 3.03% for the session. However, after-hours activity spiked dramatically following UTime’s official statement addressing what it called “misinformation” spread by a former employee.
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UTime has experienced significant volatility over the past year, trading in a range of $0.75 to $8.56 with a current market capitalization of $26.86 million.
Former Employee Behind Fraudulent Releases
The mobile manufacturer confirmed that two unauthorized press releases were published overnight on September 11. The releases falsely claimed that CEO Hengcong Qiu and other board members had resigned and been replaced.
“The Company believes the Unauthorized Press Releases were put out by a former employee who had previously managed the Company’s investor relations functions,” UTime stated in its official response.
Management Structure Remains Intact
The company stated that its leadership team is unchanged, with Hengcong Qiu continuing as both CEO and Chairman. The board also includes Director Minfei Bao, along with members Messrs. Bao, Qiu, Xiaoqian Jia, Hailin Xie, and Yanzhi Wang.
Legal Action Underway
UTime has formally notified the Securities and Exchange Commission (SEC) about its previous fraudulent filings and contacted authorities to investigate the matter. The company called the incident “a deliberate attempt to interfere with the Company’s business operations.”
WTO peaked at $4.10 on January 3rd, marking the highest point of the year, before dropping to $1.28 at yesterday's close. Trading volume also spiked to 7.5 million on January 3rd, later settling at 6 million. This reflects a 68.29% decrease from the January peak and a 59.11% loss so far in 2025.
Benzinga’s Edge Stock Rankings indicate that WTO is experiencing long-term consolidation along with medium and short-term upward movement. Know how its momentum lines up with other well-known names.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.