Nigerian businessman Dozy Mmobuosi’s Tingo Group said on Thursday it had hired law firm White & Case LLP to conduct an independent review following claims by Hindenburg Research earlier this week that the fintech firm had “fabricated” its financials.
The company has since denied all allegations of misrepresentation and tax delinquency outlined in the report, noting it would make no further comment until the review was complete.
The share value of the New Jersey-based holding company, which operates in Africa, Southeast Asia and the Middle East, dropped 80 per cent on Tuesday following the damning report.
Hindenburg Research called the whole enterprise an “exceptionally obvious scam”.
Tingo Group claims to have diversified business interests in mobile phones, food processing, and online food marketplace for farmers primarily located in Nigeria.
But the research firm alleged that the company lied about its $1.6 billion food processing plant, as well as some of its partnerships and products.
It also accused Mmobuosi of fabricating parts of his personal and professional history.
“Prior to today’s appointment of White & Case LLP, the Company had commenced its own review to confirm, among other things, the number of farmers on Tingo Mobile and the Nwassa platform, the relationships with its contracted cooperatives, the relationship with the All Farmers Association of Nigeria, and the Company’s cash balances,” Tingo said.
The company is Hindenburg’s fourth target this year, after Indian conglomerate Adani Group, Jack Dorsey-led Block Inc and Carl Icahn’s flagship Icahn Enterprises.
