Net 1 UEPS Technologies, Inc. (UEPS) Accused of Misleading Shareholders
According to the complaint, in September 2018, Net 1 UEPS Technologies, Inc. (UEPS) filed a Form 10-K that provided the Company’s fiscal year 2018 financial results and affirmed that the Company’s internal control over financial reporting was effective. Then, on November 8, 2018, UEPS filed a Form 8-K with the SEC for non-reliance on previously issued financial statements, stating that “after careful consideration…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 … should no longer be relied upon.” UEPS’ Form 8-K revealed that it had misclassified its investment in Cell C Proprietary Limited and consequently, the Company’s fiscal year 2018 financial statements had overstated UEPS’ income. On this news, UEPS’ common stock dropped precipitously by 31% to close at $7.00. The stock has since continued to decline and currently trades at around $3.70.
