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Robbins LLP Updates Kaspi.kz Shareholders on Securities Fraud Case

Robbins LLP has issued a reminder to investors regarding an ongoing class action lawsuit filed against Joint Stock Company Kaspi.kz (NASDAQ: KSPI). This action is being pursued on behalf of individuals and entities that purchased or acquired Kaspi.kz securities between January 19, 2024, and September 19, 2024. The company operates a significant subsidiary, Kaspi Bank, considered one of Kazakhstan's largest financial institutions.

Overview of the Allegations

The allegations center around claims that Kaspi.kz misled investors about its business activities related to Russian entities. The complaint highlights three main issues:
1. Continued Russian Operations: Despite the geopolitical tensions following Russia's 2022 invasion of Ukraine, Kaspi.kz allegedly continued its relationships with Russian businesses and provided services to their citizens. This raises concerns about potential sanctions that could affect the company’s operations and financial health.
2. Undisclosed Transactions: The company has been accused of failing to disclose related party transactions that could influence its financial statements and overall governance.
3. Links to Criminality: Reports suggest that some executives linked to Kaspi.kz may have connections to known criminals, further complicating the company’s public image and trust among investors.

These allegations gained additional momentum following a report by Culper Research on September 19, 2024, which labeled Kaspi.kz as heavily involved in supporting criminal and corrupt activities. In the wake of this report, the price of Kaspi.kz American Depositary Shares (ADS) dropped significantly, indicating a strong market reaction to the unfolding news. On the same day, the shares plummeted by $19.82, reflecting a 16.1% decline, followed by another drop the next day.

Next Steps for Shareholders

Affected shareholders are urged to participate in this legal action. Those interested in serving as lead plaintiffs—individuals who will represent the interests of all class members—must submit their applications to the court by February 18, 2025. Despite the involvement in the lawsuit, shareholders who prefer not to engage actively can remain as absent class members, preserving their rights to any upcoming settlements.

Representation on a Contingency Basis

Importantly, Robbins LLP operates on a contingency fee basis, meaning that shareholders will incur no upfront costs or expenses related to their legal representation. This approach is designed to ensure that every affected shareholder has access to legal counsel without financial burden.

About Robbins LLP

Founded in 2002, Robbins LLP has established itself as a leader in shareholder rights litigation. The firm is dedicated to helping investors recover losses, ensure corporate accountability, and advocate for better governance practices in companies. Their commitment to shareholder advocacy has made them a reputable choice for navigating complex legal landscapes.

For shareholders wanting to stay informed about the developments in this case, they can sign up for Stock Watch alerts, which provide updates on ongoing litigation and corporate governance issues involving company executives.

As the situation with Kaspi.kz continues to evolve, shareholders are encouraged to stay engaged and act promptly amidst rising concerns about the company’s business practices and governance.