Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Cnova securities between the initial public offering on or about November 19, 2014 (the “IPO”) and December 18, 2015 (the “Class Period”). The case, UMON v. Cnova N.V. et al, No. 1:16-cv-00498 was filed on January 22, 2016.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the material discrepancy in accounts receivable related to the damaged/returned items which in turn overstated net sales, did not properly discounted the write-off value of returned items and inflated EBIT in the Company’s financial statements.
When this information was released to the public after markets closed via a Company press release on December 18, 2015, share price fell $0.53, or nearly 18%, to close at $2.42 on December 21, 2015.