Fidelity, Putnam, and Janus are among the asset managers apparently fooled by Longtop Financial Technologies (LFT), the Chinese software company accused of falsifying its bank and loan balances.

On May 23, Longtop said Deloitte Touche Tohmatsu resigned as auditor from Longtop. The company had posted terrific annual revenue growth, but in a letter the accounting firm says the company falsified its financials, including cash balances and possibly revenue, and that it can no longer rely on management's financial reporting. Moreover, it said, given recent findings, previous audited reports should not be trusted. Thus, whatever investors thought the company had been worth, in reality, its value could be much, much less, if anything.