An investor in Cnova NV (NASDAQ:CNV) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Cnova NV.
Investors who purchased shares of Cnova NV (NASDAQ:CNV) have certain options and for certain investors are short and strict deadlines running. Deadline: March 21, 2016. NASDAQ:CNV investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges on behalf of purchasers of Cnova NV (NASDAQ:CNV) securities issued in connection with the Company’s initial public offering (“IPO”) on or about November 19, 2014 (the “IPO”) and/or between November 19, 2014 and December 18, 2015, that the defendants violated Federal Securities Laws.
The plaintiff claims that, within Cnova’s IPO registration statement, and/or between November 19, 2014 and December 18, 2015, defendants failed to disclosethat Cnova NV overstated net sales, that Cnova NV failed to properly write-off the value of certain returned items, that there was a material discrepancy in accounts receivable related to the damaged/returned items, that, as such, the Company’s EBIT was overstated, that Cnova NV lacked adequate internal controls, and that, as a result of the foregoing, Cnova’s financial statements and Defendants’ statements about Cnova’s business, operations, and prospects, were materially false and misleading at all relevant times.
On January 28, 2015 Cnova NV announced its financial results for the quarter and fiscal year ended December 31, 2014. Cnova NV announced that Net profit for fourth quarter in 2014 was € 0.8 million, compared to € 13.4 million for in the fourth quarter in 2013.
On December 18, 2015, post-market, Cnova NV announced that its Board of Directors has engaged legal advisors and external forensic accountants to perform a review of issues in connection with employee misconduct related to inventory management.
Shares of Cnova NV (NASDAQ:CNV) declined from $8.49 in January 2015 to as low as $2.15 per share on December 22, 2015.
On January 12, 2016, the company issued an update on its review of inventory management. The Company disclosed that: (1) it had uncovered an overstatement of Cnova net sales, (2) there was a “material discrepancy” in accounts receivable, and (3) that a 10% write-off of total inventory was necessary, among other issues.
Those who purchased shares of Cnova NV (NASDAQ:CNV) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com