Pomerantz Law Firm Launches Investigation into Kaspi.kz for Possible Securities Fraud

Investigation into Kaspi.kz: A Closer Look

On January 8, 2025, the Pomerantz Law Firm announced it is investigating claims related to Joint Stock Company Kaspi.kz (NASDAQ: KSPI). This investigation aims to determine if the company's officers and/or directors have engaged in securities fraud or other unlawful business practices, following serious allegations raised by Culper Research.

Background on Kaspi.kz

Kaspi.kz is known for operating the largest payment network and the second largest bank in Kazakhstan. However, the firm's credibility has come under scrutiny following a report published on September 19, 2024, by Culper Research. The report, titled "Kaspi.kz (KSPI) The NASDAQ-Listed Fintech Moving Money for Criminals and Kleptocrats," raises several concerns that could significantly impact the firm’s image and market position.

Culper Research has accused Kaspi.kz of misleading U.S. investors and regulators about its exposure to Russia. The firm claims that contrary to previous assertions, Kaspi.kz has considerable ties to Russian partners, which they believe played a critical role in the company's growth, especially following Russia's invasion of Ukraine in February 2022.

The report suggests that these relationships are an integral part of every segment of Kaspi.kz's operations. It further warns that the company's links to sanctioned oligarchs and organized crime figures threaten its premium valuation and future market performance.

The Fallout from Allegations

In the wake of Culper's report, the stock price of Kaspi.kz saw a dramatic plunge. Within just two trading sessions, the price fell by $22.53 per American Depositary Share (ADS), marking an 18.83% drop, with shares closing at $97.10 on December 20, 2024. The market's reaction signifies the serious implications of the accusations made against the company.

Pomerantz LLP, with its extensive legal expertise in corporate, securities, and antitrust class litigation, invites affected investors to come forward. Their long-standing tradition of fighting for victims of corporate misconduct seeks to ensure that investors are adequately represented in these proceedings.

Putting the Spotlight on Corporate Governance

This investigation highlights the critical need for robust corporate governance and transparency in the financial sector. Investors are increasingly vigilant regarding the integrity and practices of the companies they support.

Pomerantz LLP, known for its commitment to justice and accountability in securities fraud cases, aims to protect the rights of investors while holding companies to higher standards. Through their investigation, they aspire to uncover the truth behind the operational practices of Kaspi.kz and its management.

As this situation unfolds, stakeholders and investors are advised to keep abreast of the developments surrounding Kaspi.kz. Individuals with claims or concerns are encouraged to reach out to Danielle Peyton at Pomerantz LLP for further guidance and information.

In conclusion, the scrutiny facing Kaspi.kz is not merely a case of financial loss; it is an imperative examination of the ethical frameworks governing businesses today. The outcome of Pomerantz's investigation could usher in significant repercussions for the company and its stakeholders.

For more details or to get involved, contact Pomerantz LLP at 646-581-9980, extension 7980.