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Published January 9, 2025
Investors in Kaspi.Kz (Kaspi) were stunned after a shortseller report made shocking allegations, including violations of international economic sanctions. Stunned investors quickly dropped their shares, sending Kaspi’s stock price down 16%. Now, some of those angry investors are suing the company to recover their losses.
Kaspi is a Kazakhstan-based finance company. In 2024, it made its Initial Public Offering on the NASDAQ. On its IPO paperwork, Kaspi assured investors it complied with international economic and trade sanctions, and other economic regulations. It also assured investors it properly disclosed any related-party transactions.
But, according to the lawsuit, Kaspi’s executives knew those assurances were far from the truth.
In September 2024, shortseller Culper Research released an explosive report alleging Kaspi knowingly dodged international economic sanctions against Russia. Kaspi also allegedly failed to disclose millions of dollars in related-party transactions with various companies.
Investors quickly sold off their stock after this news, sending Kaspi’s stock price sharply down. Now, some of those investors are signing up for the lawsuit.