Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired Cnova N.V. (NASDAQ:CNV) securities between November 16, 2014 and December 18, 2015, inclusive (the "Class Period").

On December 18, 2015, Cnova reported that it had "engaged legal advisors and external forensic accountants to perform a review of issues in connection with employee misconduct related to inventory management." Following this news, shares of Cnova fell $0.53, or nearly 18%, to close at $2.42 per share on December 21, 2015.

On January 12, 2016, Cnova issued an update on its review of inventory management. Cnova disclosed that it had uncovered an overstatement of Cnova net sales and there was a "material discrepancy" in accounts receivable. The company further disclosed that a 10% write-off of total inventory was necessary.

On January 20, 2015, Cnova closed at $2.28 per share, nearly 70% below the Initial Public Offering ("IPO") price of $7.00 per share.

The lawsuit charges Cnova and certain of its officers, directors, and underwriters of Cnova's IPO with violations of the federal securities laws. Specifically, the suit alleges that, within Cnova's IPO registration statement, and throughout the Class Period, defendants failed to disclose: (1) that Cnova overstated net sales; (2) that the company failed to properly write-off the value of certain returned items; (3) that there was a material discrepancy in accounts receivable related to the damaged/returned items; (4) that, as such, Cnova's EBIT was overstated; (5) that the company lacked adequate internal controls; and (6) that, as a result of the foregoing, the company's financial statements and defendants' statements about Cnova's business, operations, and prospects, were materially false and misleading at all relevant times.

If you purchased Cnova securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact J. Brandon Walker, Esq. by email at, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to

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