Shareholder rights law firm Robbins Arroyo LLP reminds investors that purchasers of Jumia Technologies AG (JMIA) have filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between April 12, 2019 and May 9, 2019. Jumia operates a pan-African e-commerce platform
Jumia Accused of Fraud
According to the complaint, in April 2019, Jumia completed its IPO for net proceeds of approximately $280.2 million. Less than a month after, Citron Research issued a research report announcing that “Jumia is a Fraud” that “deserves immediate SEC attention.” According to the Citron Report, while media in the U.S. naively anointed Jumia the “Amazon of Africa,” numerous articles have been issued in its home country of Nigeria claiming widespread fraud. An investigation by Nigerian news reporters described Jumia as a company “struggling to survive over internal fraudulent activities” and “filled with many shady deals.” The Citron Report further notes that, just prior to the IPO, Jumia issued a confidential investor presentation in October 2018 with key financial metrics that significantly differ from its registration documents, including its reported active consumers and merchants. When the truth was revealed, Jumia’s ADSs declined approximately 28% on heavy trading volume over a two-day period, from $33.11 per ADS on May 8, 2019 to $24.50 per ADS on May 10, 2019, and has yet to recover.
Jumia Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested