#United States #New York #Class Action #Kaspi.kz #Pomerantz LLP

Pomerantz Law Firm Initiates Class Action Against Kaspi.kz

On January 8, 2025, Pomerantz LLP announced the filing of a significant class action lawsuit against Joint Stock Company Kaspi.kz, listed on NASDAQ under the symbol KSPI. This legal action has raised concerns among investors regarding potential securities fraud perpetrated by the company and its executives.

Background of the Case

The lawsuit focuses on allegations that Kaspi.kz and its top officials misled investors and regulatory bodies about the company’s financial health and operations, particularly concerning its ties to Russian partners. The class action aims to address the grievances of investors who acquired Kaspi.kz securities during the class period.

Investors who purchased shares are encouraged to reach out to Pomerantz LLP by the deadline of February 18, 2025, to seek appointment as Lead Plaintiff. Inquiries can be made to Danielle Peyton via email or phone, wherein potential plaintiffs should include their contact information and details about the purchased shares. The complete complaint is available at Pomerantz's website.

Key Allegations

The allegations emerged notably from a September 2024 report published by Culper Research titled "Kaspi.kz (KSPI): The NASDAQ-Listed Fintech Moving Money for Criminals and Kleptocrats." The report accused Kaspi.kz of having systematically misrepresented its business operations to U.S. investors, particularly asserting that the company had no ties to Russian entities prior to its NASDAQ listing in January 2024.

Culper's investigation claims that despite its public stance, the company's relationships with Russian associates significantly influence its various business aspects. The indictment further suggests that following Russia's invasion of Ukraine in February 2022, the alleged relations contributed to noticeable growth in Kaspi.kz's reported metrics. Furthermore, the report highlighted questionable dealings that raise severe flags regarding self-dealing and collusion with individuals connected to sanctioned oligarchs and organized crime in Russia, thereby threatening the company's credibility and valuation.

Market Reaction

Following the release of these allegations, the market responded swiftly. Over two trading days, the stock value for Kaspi.kz plummeted by 18.83%, dropping $22.53 per American Depositary Share (ADS), leading to a closing price of $97.10 on December 20, 2024. This significant decline reflects investor reaction to the unsettling revelations and has prompted many to reconsider their holdings in the company.

Firm's Legacy and Commitment

Pomerantz LLP, which has a longstanding reputation in the realm of securities class action litigation, continues its tradition of justice, advocating for victims of corporate misconduct and fraudulent schemes. With a strategic presence across major cities including New York, Chicago, and Los Angeles, the firm has successfully facilitated numerous multimillion-dollar settlements on behalf of affected class members.

With over 85 years of experience pioneered by its founder, Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz LLP remains committed to holding companies accountable for their alleged misdeeds in the financial intricacies of modern business.

Investors and stakeholders are advised to stay updated with the developments of this ongoing legal battle, as the ramifications could be significant for Kaspi.kz and its investors. Precautionary measures and diligent inquiry into the company's operations and administrative practices are recommended to safeguard stakeholder interests in the financial markets.