An investigation for investors in Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) shares over potential securities laws violations by Net 1 UEPS Technologies, Inc. was announced.
San Diego, CA -- (SBWIRE) -- 11/27/2018 -- Net 1 UEPS Technologies, Inc. is under investigation over potential securities laws violations in connection with certain financial statements.
Investors who purchased shares of Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS), have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) concerning whether a series of statements by Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
South Africa based Net 1 UEPS Technologies, Inc. provides transaction processing services, financial inclusion products and services, and secure payment technologies in South Africa, the Republic of Korea, and internationally. Net 1 UEPS Technologies, Inc. reported that its Total Revenue rose from $610.06 million for the 12 months period that ended on June 30, 2017 to $612.88 million for the 12 months period that ended on June 30, 2018 and that its Net Income over those time periods declined from $72.95 million to $39.15 million.
On November 8, 2018, Net 1 UEPS Technologies, Inc 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." Net 1 UEPS Technologies, Inc 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."
Shares of Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) declined to as low as $4.43 per share on November 9, 2018.
Those who purchased shares of Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) have certain options and should contact the Shareholders Foundation.
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