Tingo Closes Down 48%: Johnson Fistel Seeks Remedies for Investors After the Stock Drop (TIO)

By: Johnson Fistel, LLP via Business Wire

June 06, 2023 at 19:59 PM EDT

Johnson Fistel, LLP, a shareholder rights law firm, is investigating Tingo Group, Inc. (NASDAQ: TIO) to determine whether investors who suffered significant losses on their investment may be able to recover their losses under federal securities laws.

Click or copy and paste the following link to join our investigation: https://www.johnsonfistel.com/investigations/tingo-group-class-action

On June 6, 2023, Hindenburg Research issued a report alleging many claims against the company. The report states the company launched “Tingo Airlines” and encouraged their customers to “Fly With Tingo Airlines Today” followed by a photo-shopped image of a plane with their logo on it. However, Dozy Mmobuosi later admitted that these images were photo-shopped and the company did not own the planes. The report also states that in April of 2023, Tingo’s Co-Chairman wrote a public letter to Dozy, filed with the SEC, stating he could not approve the company’s annual report stating it was “Necessary To Recuse Myself By Resigning” due to “Many Critical Questions, Comments And Recommendations” that went “Unanswered and unheeded.”

The report also makes multiple claims about the company’s financial reports stating “Tingo’s financial statements are riddled with errors and typos, including a note to itself that it apparently forgot to delete, saying “please update for the tingle (sic) transaction including the tingle (sic) foods transaction.” Hindenburg also states “Its financials include other basic errors like incorrect math and leaving zeroes off key metrics” and “More troublingly, Tingo’s cash flow and balance sheet statements do not reconcile and show major errors indicating a complete lack of financial controls. Its cash flow statements regularly subtract items from cash that should be added and vice versa.” Lastly the report claims “The errors also seem to apply to Tingo’s audited annual financial statements, which were recently given an unqualified audit opinion by Deloitte Israel (a strange choice given the company lacks substantive operations in Israel).”

Following this news, Tingo’s stock closed down 48.24% on June 6, 2023.

Our firm works on a contingency fee basis which means there will be no cost to you. Contact Jim Baker at jimb@johnsonfistel.com or (619) 814-4471.

If you have relevant nonpublic information about the company, consider assisting the investigation or taking advantage of the SEC Whistleblower program. Whistleblowers who provide original information under the SEC program may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or jimb@johnsonfistel.com.