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
rswilloughby@pomlaw.com 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.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP