Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Net 1 UEPS Technologies, Inc.
January 2, 2014
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers (the “Class”) of securities of Net 1 UEPS Technologies, Inc. (“UEPS”) (NASDAQ: UEPS) during the period of August 27, 2009 and November 27, 2013 (the “Class Period”).
Net 1 holds a non-exclusive worldwide license to the Universal Electronic Payment System (“UEPS”). The Company commercializes the smart card-based service through alliances with banks, card services, and retail organizations.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s practices to secure contracts in South Africa were in violation of the Foreign Corrupt Practices Act (“FCPA”); and (ii) as a result, the Company’s financial statements were materially false and misleading at all relevant times.
On December 4, 2012, the Company disclosed that it was under investigation by the U.S. Department of Justice, Criminal Division and the Division of Enforcement of the Securities and Exchange Commission to determine whether the Company has “violated provisions of the [FCPA] and other U.S. federal criminal laws by engaging in a scheme to make corrupt payments to officials of the Government of South Africa in connection with securing a contract with SASSA to provide social welfare and benefits payments.” On this news, UEPS stock declined $4.62 per share, or nearly 59%, to close at $3.22 per share on December 4, 2012.
On November 29, 2013, the Company announced that the South African Constitutional Court ruled that the tender process followed by the SASSA in awarding a contract to UEPS’ wholly owned subsidiary Cash Paymaster Services (Proprietary) Limited was constitutionally invalid. On news of the South African Court’s decision, the Company’s shares fell $3.34 per share to close at $8.19 per share, a one day decline of over 28%, on unusually high trading volume.
Plaintiffs seek to recover damages on behalf of all Class members who invested in UEPS securities during the Class Period. If you invested in UEPS securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than February 24, 2014.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.