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Net 1 UEPS Technologies receives class action claim

Shareholders of a payment solutions company were recently informed that a law firm filed a class action lawsuit on their behalf.

Pomerantz Grossman Hufford Dahlstrom and Gross, LLP, recently filed the securities class action lawsuit against Net 1 UEPS Technologies. This suit was entered into the U.S. District Court for the Southern District of New York for those who purchased shares during the class period between Aug. 27, 2009, and Nov. 27, 2013.

The law office filed the suit after allegations were made that Net 1 violated the Securities Exchange Act of 1934, specifically Sections 10(b), 20(a) and Rule 10b-5. This was due to the company making statements that were either false or otherwise misleading about its work in South Africa, as it may have violated the Foreign Corrupt Practices Act while trying to earn contracts in the country.

Net 1 noted on Dec. 4, 2012 that it was the center of an investigation led by the U.S. Department of Justice, Criminal Division, as well as the Department of the Enforcement of the Securities and Exchange Division. That investigation was due to the aforementioned claims. The announcement triggered a stock price decline of approximately 60 percent on Dec. 4, 2012, bringing the units of ownership to $3.22 per share.

The stock fell again on Nov. 29, 2013, after the company explained that one of its contracts was overruled in a South African Court. This had the figure drop another $3.34 per share to $8.19 per share.

Those shareholders who are interested in becoming lead plaintiff should file the necessary paperwork by Feb. 24. It is possible to speak with the law firm to learn more about this case, regardless of lead plaintiff interest. Firm member Robert Willoughby would be the best contact, and he can be reached by email or phone. Shareholders who plan to email the firm should list their mailing address, phone number and the number of shares they acquired in Net 1.

Second lawsuit filed
Another law firm noted that it filed litigation against Net 1. Rigrodsky and Long brought forth the lawsuit in the same district court for the aforementioned class period.

It is also possible to speak with this law firm to learn more about the current action. Firm members Timothy MacFall and Peter Allocco noted they are available to be reached by email or mail.

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