A US-based law firm, Jakubowitz Law, says it has commenced a securities fraud class action lawsuit on behalf of shareholders of Tingo Group, Inc.
Tingo Group founded by Dozy Mmobuosi has come under allegations that the tech firm made alleged false claims in its business dealings.
The lawsuit aims to recover losses incurred by shareholders who purchased Tingo securities between December 1, 2022, and June 6, 2023, Jakubowitz Law says in a statement seen by Technology Times.
The case against Tingo Group
According to the filed complaint, Tingo Group, Inc. is accused of issuing materially false and/or misleading statements and failing to disclose certain information.
The allegations include fabricated biographical claims by Defendant Mmobuosi, the photoshopping of the company’s logo onto pictures of airplanes it did not own, and the inflation of food division margins.
Additionally, Tingo is accused of publishing misleading images of its Nigerian food processing facility and overstating progress on its construction, inflating its food inventory, and falsely claiming relationships with farming cooperatives.
The lawsuit alleges that:
(1) Defendant Mmobuosi fabricated biographical claims about himself;
(2) Tingo had photoshopped its logo onto pictures of airplanes it did not own;
(3) Tingo inflated its food division margins;
(4) Tingo published misleading images of its planned Nigerian food processing facility and overstated its progress on the facility’s construction; (5) Tingo inflated its food inventory;
(6) Tingo did not have relationships with the two farming cooperatives it claimed;
(7) Tingo did not generate $128 million in revenue for its handset leasing, call and data segments as it claimed;
(8) Tingo’s Mobile operation in Nigeria was delinquent on its tax obligations;
(9) Tingo photoshopped its logo over pictures from a different point of sale system operator’s website;
(10) Tingo did not generate $125.3 million in revenue from its online marketplace called NWASSA;
(11) Tingo’s agricultural export business was not on track to deliver $1.34 billion in exports by Q3 2023;
(12) Tingo lacked effective controls over accounting and financial reporting; and;
(13) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The lawsuit alleges that these actions demonstrate a lack of effective controls over accounting and financial reporting, resulting in misleading positive statements about Tingo Group’s business, operations, and prospects.
Shareholders who are interested in participating as lead plaintiffs representing the class of affected shareholders, Jakubowitz Law says, have until August 7, 2023, to petition the court. “It is important to note that the ability to share in any potential recovery does not require serving as a lead plaintiff,” the law firm says.
Jakubowitz Law claims that it is dedicated to pursuing justice for shareholders who have been victims of securities fraud.