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Backblaze responds to claims of “sham accounting,” customer backups at risk
Short seller publishes report detailing allegations about Backblaze’s financials…
The short seller also noted that Hall accused Backblaze of pressuring workers to certify “inaccurate” financial statements and refused to approve certain financial reports because he believed they included “misstatements regarding the Fixed Assets, Capitalized R&D, Cash Flow statements, and Equity accounting.” Similarly, Kisner accused Backblaze of sending “highly inflated cash flow forecasts to auditors.” Beyond the financial implications for stockholders, Morpheus’ report has sparked some concern for the primarily small businesses and individuals relying on Backblaze for data backup. The report is inaccurate and misleading, based largely on litigation of the same nature, and a clear attempt by short sellers to manipulate our stock price for financial gain.
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