SAN DIEGO, June 09, 2023 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP, a shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of Tingo Group, Inc. (“Tingo” or the “Company”) (NASDAQ: TIO) investors who acquired securities between March 31, 2023 and June 6, 2023, inclusive (the “Class Period”). If you are a shareholder who incurred losses during this period, you have until August 7, 2023, to move the court to become a lead plaintiff in this action.
If you would like more information and want to join the class action please click or copy and paste the following link:
On June 6, 2023, Hindenburg Research issued a report alleging many claims against the company. The report states the company launched “Tingo Airlines” and encouraged their customers to “Fly With Tingo Airlines Today” followed by a photo-shopped image of a plane with their logo on it. However, Dozy Mmobuosi later admitted that these images were photo-shopped and the company did not own the planes. The report also states that in April of 2023, Tingo’s Co-Chairman wrote a public letter to Dozy, filed with the SEC, stating he could not approve the company’s annual report stating it was “Necessary To Recuse Myself By Resigning” due to “Many Critical Questions, Comments And Recommendations” that went “Unanswered and unheeded.”
The report also makes multiple claims about the company’s financial reports stating “Tingo’s financial statements are riddled with errors and typos, including a note to itself that it apparently forgot to delete, saying “please update for the tingle (sic) transaction including the tingle (sic) foods transaction.” Hindenburg also states “Its financials include other basic errors like incorrect math and leaving zeroes off key metrics” and “More troublingly, Tingo’s cash flow and balance sheet statements do not reconcile and show major errors indicating a complete lack of financial controls. Its cash flow statements regularly subtract items from cash that should be added and vice versa.” Lastly the report claims “The errors also seem to apply to Tingo’s audited annual financial statements, which were recently given an unqualified audit opinion by Deloitte Israel (a strange choice given the company lacks substantive operations in Israel).”
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Defendant Mmobuosi fabricated biographical claims about himself; (2) that Tingo had photoshopped its logo onto pictures of airplanes it did not own; (3) that Tingo inflated its food division margins; (4) that Tingo published misleading images of its planned Nigerian food processing facility and overstated its progress on the facility’s construction; (5) that Tingo inflated its food inventory; (6) that Tingo did not have relationships with the two farming cooperatives it claimed; (7) that Tingo did not generate $128 million in revenue for its handset leasing, call and data segments as it claimed; (8) that Tingo’s Mobile operation in Nigeria was delinquent on its tax obligations; (9) that Tingo photoshopped its logo over pictures from a different point of sale system operator’s website; (10) that Tingo did not generate $125.3 million in revenue from NWASSA; (11) that Tingo’s agricultural export business was not on track to deliver $1.34 billion in exports by Q3 2023; (12) that Tingo lacked effective controls over accounting and financial reporting; and (13) that, 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.
A lead plaintiff will act on behalf of all other class members in directing the class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor's ability to share any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
Johnson Fistel, LLP is a shareholder rights law firm representing individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information, visit their website http://www.johnsonfistel.com.
Johnson Fistel, LLP
Jim Baker, 619-814-4471