NEW YORK, Jan. 24, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Net 1 UEPS Technologies, Inc. ("Net 1" or the "Company")(NASDAQ: UEPS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13-CIV-9100, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Net 1 securities between August 27, 2009 and November 27, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Net 1 securities during the Class Period, you have until February 24, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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.
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 of the above, 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 the Enforcement of the Securities and Exchange Commission to determine whether the Company has "violated provisions of the Foreign Corrupt Practices Act 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, Net 1 stock declined $4.62 per share, or nearly 59%, to close at $3.22 per share on December 4, 2012.
Then, 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 Net1's wholly owned subsidiary Cash Paymaster Services (Proprietary) Limited ("CPS") 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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP