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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of March 12, 2018 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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Lawsuit Overview
Settlement Overview
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October 11, 2017 - The court preliminarily approved the settlement.
September 22, 2017 - A stipulation of settlement was filed by the parties.
August 16, 2016 - An amended consolidated complaint was filed.
June 13, 2016 - An amended complaint was filed.
January 20, 2016 - An investor in shares of Cnova NV (NASDAQ: CNV) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Cnova NV.
According to the complaint the plaintiff alleges on behalf of purchasers of Cnova NV (NASDAQ: CNV) securities issued in connection with the Company’s initial public offering (“IPO”) on or about November 19, 2014 (the “IPO”) and/or between November 19, 2014 and December 18, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that, within Cnova NV’s IPO registration statement, and/or between November 19, 2014 and December 18, 2015, defendants failed to disclose that Cnova NV overstated net sales, that Cnova NV failed to properly write-off the value of certain returned items, that there was a material discrepancy in accounts receivable related to the damaged/returned items, that, as such, the Company’s EBIT was overstated, that Cnova NV lacked adequate internal controls, and that, as a result of the foregoing, Cnova NV’s financial statements and Defendants’ statements about Cnova NV’s business, operations, and prospects, were materially false and misleading at all relevant times. Cnova NV reported that its annual Total Revenue rose from over 2.89 billion EUR in 2013 to over 3.47 billion EUR in 2014 while its respective Net Loss increased from 22.49 million EUR to 51.79 million EUR.
On January 28, 2015 Cnova NV announced its financial results for the quarter and fiscal year ended December 31, 2014. Cnova NV announced that Net profit for fourth quarter in 2014 was € 0.8 million, compared to € 13.4 million for in the fourth quarter in 2013.
On December 18, 2015, post-market, Cnova NV announced that its Board of Directors has engaged legal advisors and external forensic accountants to perform a review of issues in connection with employee misconduct related to inventory management. Shares of Cnova NV (NASDAQ: CNV) declined from $8.49 in January 2015 to as low as $2.15 per share on December 22, 2015.
On January 12, 2016, the company issued an update on its review of inventory management. The Company disclosed that: (1) it had uncovered an overstatement of Cnova NV net sales, (2) there was a “material discrepancy” in accounts receivable, and (3) that a 10% write-off of total inventory was necessary, among other issues.