Net 1 UEPS Technologies, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Net 1 UEPS Technologies, Inc. (“Net 1” or the “Company”) (NASDAQ: UEPS) securities during the period from September 12, 2018 through November 8, 2018. Investors have until February 3, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Net 1 failed to disclose that: (i) the Company lacked effective internal control over financial reporting; (ii) the Company had misclassified its investment in Cell C Proprietary Limited (“Cell C”); and (iii) the Company’s financial statements for the fiscal year 2018 were overstating its income.
On November 8, 2018, Net 1 filed a Form 8-K with the SEC for non-reliance on previously issued financial statements stating that the Company’s investment in Cell C was incorrectly presented as available-for-sale and the change in its fair value of $25.2 million, net of taxation of $7.3 million, was incorrectly recorded in other comprehensive income for the year ended June 30, 2018. The investment in Cell C should have been accounted for at fair value with changes in fair value recorded in the statement of operations. On this news, the price of Net 1 shares fell $2.16, or 30.9%, to close at $4.84 per share on November 9, 2018.
If you are a shareholder of Net 1, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.