Newman Ferrara LLP is conducting an investigation into potential violations of federal securities laws by Net 1 UEPS Technologies Inc. (“Net 1”) (Nasdaq: UEPS) and certain of its executive officers and directors.
On December 4, 2012, Net 1 announced that on November 30, 2012, it received a letter from the U.S. Department of Justice, Criminal Division, informing Net 1 that the Department of Justice and the Federal Bureau of Investigation have begun an investigation into whether Net 1 and its subsidiaries, including their officers, directors, employees, and agents, 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 the South African Social Security Agency to provide social welfare and benefits payments. The investigation also looked into whether Net 1 engaged in violations of the federal securities laws in connection with statements made by Net 1 in its Securities and Exchange Commission filings regarding that contract. In addition, Net 1 announced that on November 30, 2012, it also received a letter from the Division of Enforcement of the Securities and Exchange Commission advising Net 1 that it is also conducting an investigation of Net 1.
On this news, shares of Net 1 dropped 58% down to a December 4, 2012 closing price of 3.22 per share.
Shareholders of Net 1 stock are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or email@example.com to discuss this investigation and their rights as Net 1 shareholders.Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action. Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.