The Financial Conduct Authority (FCA) has been urged to investigate the collapse in the share price of Blancco Technology Group, a company listed on the Alternative Investment Market (Aim).
The call comes from ShareSoc, which is the lobbying society for individual shareholders.
Blancco's shares have collapsed from 308p in March 2017 to 72p at 8.29am on 12 January.
The company also issued new shares during that period.
Blannco Technology, based in Tonbridge in Kent, specialises in data management and erasure. The company lost £2.5m in the year to 30 June 2017.
ShareSoc wants the FCA to investigate the restatement of the company's financial results for the year ending June 30 2016, which increase its losses by £1.5m and reported the reversal of two contracts, totalling £2.9m, which had been booked as revenue during June 2017.
The investor body also wants the regulator to look into the "apparent failure of the audit of the 2016 accounts by KPMG to discover the errors in revenue recognition”.
ShareSoc added: “The terms of the vesting of an executive Stock Appreciation Right, the timing of a disposal of shares under the scheme and the disclosure of payments to the former CEO, Patrick Clawson, who has now left the company, should also be investigated.”