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Jumia now faces Class Action Lawsuits over Fraud Allegations

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Jumia started really well when they first traded on the New York Stock Exchange, but hasn’t had it easy after that. Here’s a timeline of how thing have happened:

  • Jumia goes Public – Shares up 75% on First day of trading
  • People start talking on Twitter about how African Jumia is with hashtag #JumiaNotAfrican
  • Jumia CEO is quoted on CNBC saying “…in Africa there’s not enough development and developers”
  • Citron Research publishes ‘smoking gun’ calling Jumia an ‘Obvious Fraud’ and now…
  • Jumia faces a class action lawsuit over fraud

Gainey McKenna & Egleston, have announced that a class action lawsuit has been filed against Jumia Technologies AG (NYSE: JMIA) in the United States District Court for the Southern District of New York on behalf of those who purchased or acquired the securities of Jumia between April 12, 2019 through May 9, 2019, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

(The Schall Law Firm has also announced a similar lawsuit encouraging shareholders who suffered a loss to participate)

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:

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  1. Jumia had materially overstated its active customers and active merchants;
  2. Jumia’s representations about its orders, order cancellations, undelivered orders and returned orders lacked a sufficient factual basis and materially overstated Jumia’s sales;
  3. Jumia failed to sufficiently disclose related party transactions;
  4. Jumia’s financial statements were presented in violation of applicable accounting standards; and
  5. as a result of the foregoing, defendants’ positive statements about Jumia’s business, operations, and prospects, were materially misleading and lacked a reasonable basis.

When the true details entered the market, the lawsuit claims that investors suffered damages.

The Citron Research paper that started all this said that over 41% of Jumia orders were returned, not delivered, or cancelled. Something Jumia failed to include in thei F-1 filing. Citron called upon a full investigation on Jumia saying that they believe more would be unearthed in such an investigation.

However, a recently published Quartz Article said the “Beverly Hills-based Citron Research is known on Wall Street for making several claims of fraud and has faced calls to be investigated. Andrew Left, Citron’s founder, has been banned from trading in Hong Kong for making claims which are “false and misleading and likely to alarm ordinary investors.””

What happens next is unclear, but we are all waiting to hear what Jumia has to say with these lawsuits. After the Citron paper scandal came out, Sacha Poignonnec, Jumia CEO, said in the above linked Quartz Article, the company is “transparent” and declined to respond directly to the claims made by Citron saying, “We don’t necessarily want to feed those types of organizations or people”.

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Catch Taxi Kenya, with Ethiopian roots, wants to be East Africa’s super app

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Catch Taxi Kenya is a new entrant into the African ride-hailing industry that prioritizes safety, comfort, and efficiency.

Catch Taxi Kenya, launching to take on Uber, Bolt, MaraMoja Transport, Safeways, Cabby, Ride, Jayride among others, is operated and owned by Africans for Africans and brings local creativity and insights to get improving the experience of riders and drivers.

Founded by Nafie Omar, Catch Taxi’s vision is to make an app that captures all local African needs into one super App from ride-hailing to complete ecosystem services.

“Nairobi is Africa’s technological hub. In terms of ride-hailing, Nairobi is a more mature market compared to most cities in Africa. Our goal at Catch Taxi is to be able to create a footing in all African markets-both young and mature markets,” said Omar. “We will also be expanding into Sudan next year and West Africa and other Southern African countries later.”

Catch Taxi knows there are several other platforms in the market but says its disruptive entry to market ensures strong earnings for its driver partners. It’s also introducing an affiliate programme to allow third party drivers, influencers and ordinary individuals to make passive income.

Its business model is simple. Catch Taxi will get you where you want to go at the best prices, safely and comfortably. It charges its drivers a 15% commission from every trip. The firm has raised an undisclosed amount of seed capital and is not afraid to take on giant Uber and Bolt which just raised €100m from London-based Naya Capital Management.

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However, the ongoing pandemic has been a huge blow to how Catch Taxi would have wanted to grow. COVID-19 slowed down its efforts both in Addis Ababa this April and Nairobi. Just 2 weeks after its launch in Addis Ababa, it had to redirect its efforts to compensating its drivers by giving them incentives.

Benard Gavana, Catch’s VP Growth and Expansion told TechMoran.com that the Kenyan startup decided to start operations from Ethiopia because of its huge population and attractive market but its whole executive team is Kenyan and is based at its HQ in Nairobi, Kenya.

The firm said it also provided free trips to essential workers and gave huge discounts to its riders. As the economies open up, Catch Taxi is focused on growing its market share in Africa through local recruitments, marketing, and fine-tuning its product.

The 38 person-team spread across operations, developers, customer service, marketing, and data analysis aims to be an everyday app that incorporates all consumer needs from ride-hailing, E-commerce, financial services, travel, hotel booking to delivery services in Africa.

After its Ethiopia and Kenya launch, Catch is looking to expand across East Africa and then into entire Sub-Saharan Africa banking on neural networks and ML algorithms to understand user patterns and be able to target them appropriately.


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KCB temporarily closes Mvita Branch after staff tests positive for COVID-19

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KCB Bank Kenya has temporarily closed its Mvita branch after one of the staff tested positive for COVID-19. The affected staff who were working with him at the time of testing have been informed and are currently undergoing counselling and screening to ensure their safety and wellbeing.

The Branch has since been temporarily closed for three days with the approval of the Central Bank of Kenya to enable immediate cleaning and disinfection of the premises. Regulation by the Kenya Occupational Safety and Health Act, 2007, mandates an employer to ensure that a workplace is healthy and safe for visitors, clients and employees at the workplace.

In the present circumstances, employers are encouraged to take reasonable measures at the workplace to protect employees from COVID-19 and ensure compliance with the Occupational Safety and Health Act.

“Our priority remains to safeguard the safety and well-being of all our staff, customers and other stakeholders during these difficult times,” said KCB Group Chief Executive Officer & Managing Director Joshua Oigara.

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“As the fight against this pandemic continues, we have taken several precautionary measures internally, in line with the guidelines issued by government agencies. We continue to provide support to staff and their families during this period of the pandemic” he added.

KCB Mvita branch customers who access the bank on regular basis have been encouraged to use the Banks digital channels including: Mobile banking, KCB-MPESA, Vooma and Internet Banking or other alternative banking touchpoints such as KCB Mtaani agents, Cash recyclers, ATMs, Cash Deposit Machines.

In addition, Mvita Branch customers can visit nearby branches and agents for assistance.

 


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Best Online Video Editors Without Watermarks

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These are the best online video editors without watermarks.

There’s nothing more frustrating than editing videos then seeing a huge watermark on your video. The watermarks make it look unprofessional and reduces the quality of your work. However, if you’re looking for other option we compiled a few for you that you can try. In this article, you will get to know the best online video editors without a watermark to create and edit videos that attract thousands of views.

1.WeVideo

It’s compatible with android and iOS mobiles, Chromebook, Mac and windows without downloading it. Upload any file format, edit and share it on social media and web while on the go. To save your storage space, it has a cloud-based storage system that offers unlimited media storage space.

2.Movie Maker Online

The greatest advantages of using Movie Maker Online are no registration requirements, free to use and edited videos have no watermarks and site labels. Imagine uploading all kinds of photos and images for free with only one click! And to make it the best, the number of royalty-free music videos can take you months to edit.

3.Clipchamp

This is no doubt the most used online video editor no watermark no download software due to its simplicity and above all, free. The Clipchamp library is overstocked with all genres of videos and music. Its best features include creating and editing original videos, collecting videos from websites, recording, compressing and converting videos. There is a video template for every kind of video you want to create.

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4.VSDC Free Video Editor

With VSCD Free Video Editor, there are no free trials, no ads and no watermarks. Just download this software and start editing your videos for free. It works exceptionally well with all types of audio, video and image formats. The video effects are superb. You can alter the shape and position of images in the video quite easily.

5.OpenShot

OpenShot is a free online video editor without watermark software that’s compatible with mac, windows, and Linux. There are over ten features to ensuring the edited videos meet the desired specifications. They include trim and slice, drop and drag, slow motion and time effects, and audio editors. There are over 400 video transitions and effects to make your videos as stunning as possible.

6.MiniTool Movie Maker

How about using a video editor online free with effects no watermark developed by Microsoft? Surely, this makes you feel more confident when editing videos. This Windows Essential Software Suite is designed purposely for Window users to create, edit and share videos. Other features include video trimming, video splitter, title, and caption templates. Add transitions and effects and animations to make videos more thrilling.


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