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 rocess 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 & Kapetan, P.A. by email at email@example.com
or toll-free at 1 (866) 277-8631.
& Kapetan, P.A. is a law firm with offices in Oakland,
California and Lighthouse Point, Florida, with expertise in the
representation of investors in securities fraud and investor litigation
claims. You may visit its website at www.wklawyers.com.
Michele Desoer, an attorney at Wites & Kapetan, is a member of the State
Bar of California and is responsible for the content of this
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