NEW YORK, Nov. 9, 2018 /PRNewswire/ — 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.
If you purchased Net 1 UEPS securities, and/or would like to discuss your legal rights and options, please visit Net 1 UEPS Shareholder Investigation or contact Daniel Sadeh toll free at (877) 779-1414 or email@example.com.
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.
If you purchased Net 1 UEPS securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/net-1-ueps-technologies-inc-ueps-lawsuit-class-action-fraud-stock-92/ or contact Daniel Sadeh toll free at (877) 779-1414 or firstname.lastname@example.org.
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