After an expose report by Citron Research’s Andrew Left on allegedly Pre-IPO fraudulent investor presentation by Jumia Technologies AG, the company is now under investigations led by the Kaskela Law LLC, a US-based law firm that exclusively represents investors in securities fraud, corporate governance, and merger & acquisition.
The law firm is carrying out the investigations on behalf of the company’s investors in a bid to determine whether Jumia violated the federal securities laws in connection with statements made to investors.
In the report titled ‘Citron Exposes the Smoking Gun‘Andrew Left cites various discrepancies between Jumia’s confidential investor presentation from October 2018 that was being used to market to investors late last year and the presentation they did to the Securities Exchange Commission before the IPO.
In order to raise more money from investors, Jumia inflated its active consumers and active merchant’s figures by 20-30% (FRAUD).
Investors who purchased Jumia’s shares are encouraged to contact Kaskela Law LLC to discuss this investigation and their legal rights and options.
Hagens Berman, another US-based law firm that represents investors, whistleblowers, workers and consumers in complex litigation is also calling on investors who acquired Jumia securities before May 9, 2019, suffered losses, and wish to learn more about the investigation or have knowledge of facts that may assist the firm’s investigation to reach
Jumia’s stock price has been on a steady decline losing over 20% ever since the report was released. The company is yet to officially respond to the report.
This is a developing story. More updates to follow.
Image Credits: George Osodi/Bloomberg