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Tingo Group, Inc.

Case Details

Class Period: December 1, 2022 - June 6, 2023
Date Filed: June 08, 2023
Case Number: 2:23cv03151
Jurisdiction: District of New Jersey
icon-casetype Case Type: Securities Case

Case Summary

On June 6, 2023, Hindenburg Research published a report titled “Tingo Group: Fake Farmers, Phones, and Financials—The Nigerian Empire That Isn’t.” Therein, Hindenburg disclosed, among other things, that Tingo “is an exceptionally obvious scam with completely fabricated financials.” Hindenburg further stated that Dozy Mmobuosi appears to have fabricated his biographical claim, including that he developed the first mobile payment app in Nigeria and that he received a PhD in rural advancement from a Malaysian university in 2007.

On this news, the Company’s stock price fell $1.23, or 48.2%, to close at $1.32 per share on June 6, 2023, thereby injuring investors.

The Complaint filed in this class action 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.

On February 14, 2024, the United States District Court for the District of New Jersey appointed Perdeep Kanda & Pavel Krykhtin as Lead Plaintiffs and Saxena White P.A. as Lead Counsel.