New York-based law firm Jakubowitz Law says it has commenced a securities fraud class action lawsuit against Tingo Group on behalf of shareholders.
This is coming after a report by US investment research firm Hindenburg Research claimed the company’s founder Dozy Mmobuosi lied about his investments.
The report released last month accused the fintech company of being an “exceptionally obvious scam with completely fabricated financials”.
Jakubowitz Law said in a statement that the lawsuit aims to recover losses incurred by shareholders who purchased Tingo securities between December 1, 2022, and June 6, 2023.
The allegations include fabrication of biography by Mmobuosi, photoshopping of the company’s logo onto pictures of airplanes it did not own, and the inflation of food division margins.
Also, Tingo is accused of publishing misleading images of its Nigerian food processing facility and overstating progress of its construction, inflating its food inventory, and falsely claiming relationships with farming cooperatives.
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The suit also accuses Tingo of not generating $128 million in revenue for its handset leasing, call and data segments as it claimed.
Jakubowitz Law said shareholders who are interested in participating as lead plaintiffs representing the class of affected shareholders 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 firm said.
