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New York, NY - February 21, 2020 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed an amended complaint in the class action against Jumia Technologies, A.G. for violation of the Securities Act of 1933.
On April 11, 2019, Jumia closed its initial public offering of 13.5 million American Depository Shares at $14.50 per share, raising proceeds before expenses of approximately $182 million.
On August 21, 2019, Jumia disclosed certain findings of a sales practice review launched in response to allegations that some of its independent sales consultants, members of its JForce program in Nigeria, may have engaged in improper sales practices. The Company disclosed that:
“In the course of this review, we identified several JForce agents and sellers who collaborated with employees in order to benefit from differences between commissions charged to sellers and higher commissions paid to JForce agents. The transactions in question generated approximately 1% of our GMV in each of 2018 and the first quarter of 2019 and had virtually no impact on our 2018 or 2019 financial statements. We have terminated the employees and JForce agents involved, removed the sellers implicated and implemented measures designed to prevent similar instances in the future. The review of this matter is closed.
“More recently, we have also identified instances where improper orders were placed, including through the JForce program, and subsequently cancelled. Based on our findings to date, we believe that the transactions in question generated approximately 2% of our GMV in 2018, concentrated in the fourth quarter of 2018, approximately 4% in the first quarter of 2019 and approximately 0.1% in the second quarter of 2019. These 0.1% have already been adjusted for in the reported GMV figure for the second quarter of 2019. These transactions had no impact on our financial statements. We have suspended the employees involved pending the outcome of our review and are implementing measures designed to prevent similar instances in the future. We continue our review of this matter.”
As of the close of trading on October 8, 2019, Jumia shares traded at $7.54 per share, approximately 48% lower than Jumia’s IPO price.
- Amended Complaint
- Notice and Claim Form
Claim Website:
https://www.strategicclaims.net/jumia/
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