NET 1 UEPS SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
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Net 1 UEPS Technologies, Inc.
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) resulting from allegations that Net 1 UEPS and/or its executives may have issued materially misleading business information to the investing public.
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NET 1 UEPS LOSSES ALERT: BERNSTEIN LIEBHARD LLP ANNOUNCES FIRST INVESTIGATION OF NET 1 UEPS TECHNOLOGIES, INC. – UEPS
November 9, 2018.
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of Net 1 UEPS Technologies, Inc. (“Net 1 UEPS” or the “Company”) (NASDAQ: UEPS) resulting from allegations that Net 1 UEPS and/or its executives may have issued materially misleading business information to the investing public.
On November 8, 2018, during aftermarket hours, Net 1 UEPS disclosed “that the Company’s consolidated financial statements for the year ended June 30, 2018, included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018, should be restated, and that such consolidated financial statements and Deloitte & Touche (South Africa)’s audit report thereon should no longer be relied upon, due to the Company’s re-evaluation of the classification of its investment in Cell C Proprietary Limited (“Cell C”).” The Company further disclosed that its “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 Company explained that it “incorrectly used the guidance in ASC 320 Investments-Debt and Equity Securities regarding available-for-sale equity instruments with readily determinable fair values. Cell C’s equity securities are not listed on an exchange and therefore there are no sales prices or bid-and-asked quotations that are currently available on a securities exchange, and therefore it did not meet the scope requirements of an equity security under ASC 320. As a result, the investment was incorrectly classified as an available-for-sale equity instrument with the changes in fair value being incorrectly recorded as part of other comprehensive income rather than through earnings.”
On this news, shares of Net 1 UEPS fell sharply during intra-day trading on November 9, 2018.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.