We are investigating Jumia Technologies AG (JMIA) (“Jumia” or the “Company”) for potential violations of the federal securities laws.
On May 9, 2019, Citron Research (“Citron”) issued a report alleging that Jumia is the “most obvious fraud” that Citron had ever encountered, citing alleged “material discrepancies” between a confidential investor presentation by Jumia in October 2018 and the Company’s representations to the U.S. Securities and Exchange Commission. According to Citron, Jumia inflated active customer and active merchant numbers by 20% to 30% and concealed the fact that 41% of the Company’s orders were returned, not delivered or canceled. On this news, Jumia’s American depositary receipt (“ADR”) price fell $6.22 per share, or over 18.8%, to close at $26.89 per share on May 9, 2019.