It is getting to 24 hours since the bombshell accusation that Jumia is a “fraud”. Yet, as I write, Jumia is yet to put out a statement. People, this is America where making money is also entertainment. You cannot have equities in the market and not have your investors’ relations unit ready to go to war.
Jumia has been brutally “attacked”, it needs to return with thorough explanations. If it delays more hours, U.S. Securities & Exchange Commission (SEC) can take severe actions on it. I do hope it is already talking with SEC as the lawyers are gathering: “”We’re focused on investors’ losses, whether the matters raised by Citron are correct, and whether investors may have been misled,” said Hagens Berman partner Reed Kathrein.” Yes, the adverts are out and soon, it will be class action! American trial lawyers cannot see a better target!
Jumia has lost 25% of its value so far today. Broadly, it has lost more than $2 billion since the IPO closing number: from total market cap of $3.9 billion to $1.59 billion now. Yet, it began from $0 and rose to $3.9 billion. Nothing has happened – we must wait to understand its trajectory after the next two quarterly earnings.
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Citron Research Calls Jumia a “Fraud”, Stock Drops [Download the Report]
SAN FRANCISCO, May 9, 2019 /PRNewswire/ — Hagens Berman Sobol Shapiro LLP, with nine offices in eight cities around the country and 80 attorneys, alerts investors in Jumia Technologies AG (NYSE: JMIA) to the firm’s investigation into possible disclosure violations.
If you purchased or otherwise acquired Jumia securities before May 9, 2019, suffered losses, and wish to learn more about the investigation or have knowledge of facts that may assist the firm’s investigation contact Hagens Berman:
[…]
On May 9, 2019, Citron Research published a report questioning data contained in Jumia’s April 2019 IPO materials versus data contained in an October 2018 confidential presentation. The report accuses Jumia of (1) overstating certain financial metrics in the prospectus, and (2) omitting adverse information about the number of returned, undelivered, or canceled orders from the prospectus. In response, the price of Jumia ADSs significantly fell on May 9, 2019.
“We’re focused on investors’ losses, whether the matters raised by Citron are correct, and whether investors may have been misled,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Jumia should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-…] or email […]
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