On December 4, 2012, Net 1 UEPS Technologies, Inc. (“Net 1” or the “Company”) (NASDAQ: UEPS) 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 [the] South African Social Security Agency (“SASSA”) to provide social welfare and benefits payments.” Following this news, Net 1 shares declined by $4.62 per share, or nearly 59%, to close at $3.22 per share on December 4, 2012, on unusually heavy trading volume.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 Net 1’s wholly owned subsidiary Cash Paymaster Services (Proprietary) Limited (“CPS”) was constitutionally invalid. Following this news, shares of Net 1 declined by $3.34 per share, nearly 29%, to close at $8.19 per share on November 29, 2013, again on unusually heavy trading volume.
If you are an investor who purchased Net 1 stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites & Rogers by email at info@witeslaw.com or toll-free at 1 (866) 277-8631.
