WASHINGTON, March 02, 2016 (GLOBE NEWSWIRE) -- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Cnova N.V. (“Cnova” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 or committed violations of Section 11 of the Securities Act of 1933.
A class action lawsuit was filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of purchasers of the common stock of Cnova N.V. (NASDAQ:CNV) between November 19, 2014 and December 18, 2015, inclusive (the “Class Period”), including those who purchased shares pursuant or traceable to the Company’s November 19, 2014 initial public offering.
The complaint alleges that Cnova and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) the Company failed to properly write-off the value of certain returned items; (2) there was a material discrepancy in accounts receivable related to the damaged/returned items; (3) the Company overstated net sales and earnings; (4) the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about Cnova’s business, operations, and prospects, were materially false and misleading.
On Friday, December 18, 2015, the last day of the Class Period, Cnova announced an internal review of “issues related to inventory management” at its Brazilian subsidiary Cnova Comercio Eletronico S.A. (Cnova Brazil). The price of Cnova shares fell from $2.95 to $2.41 on Monday, December 21.
The Company subsequently disclosed that the internal review had discovered, among other things, an overstatement of net sales and accounts receivable that resulted in an overstatement of EBIT. It has since revealed that, “incorrect entries concerning primarily accounts payable and written reports were intentionally prepared by Cnova Brazil accounting staff at the direction of former Cnova Brazil employees,” and the scope of the internal investigation has been expanded to include “this matter.” Cnova’s Co-CEO and head of Brazilian operations resigned amidst the ongoing internal investigation.
Cohen Milstein encourages all investors who purchased Cnova common stock pursuant or traceable to the Company’s November 19, 2014 IPO, and/or between November 19, 2014 and December 18, 2015; or former employees with information concerning this matter to contact the firm.
If you are a Cnova shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than March 21, 2016 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over two billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Ryan Marchbank
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rmarchbank@cohenmilstein.com
Attorney Advertising