(Reuters) – Tingo Group said on Thursday it had hired law firm White & Case LLP to conduct an independent review after short-seller Hindenburg Research earlier this week alleged that the fintech firm had “fabricated” its financials.
The company, which has refuted the allegations of misrepresentation and tax delinquency outlined in the report, said it will make no further comment until the review was complete.
The New Jersey-based holding company, which operates in Africa, Southeast Asia and the Middle East, halved in value on Tuesday after the short-seller called it an “exceptionally obvious scam” and criticized founder Dozy Mmobuosi’s claims of having developed “the first mobile payment app in Nigeria”.
“Prior to today’s appointment of White & Case LLP, the Company had commenced its own review to confirm, among other things, the number of farmers on Tingo Mobile and the Nwassa platform, the relationships with its contracted cooperatives, the relationship with the All Farmers Association of Nigeria,and the Company’s cash balances,” Tingo said.
The company is Hindenburg’s fourth target this year, after Indian conglomerate Adani Group, Jack Dorsey-led Block Inc and Carl Icahn’s flagship Icahn Enterprises.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shinjini Ganguli)
