More problems for Sheffield United's 'nearly' new owner as top US lawyers prepare action
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The Star reported over the weekend that a number of lawyers based in the States are planning to take Tingo, owned by Nigerian entrepreneur Dozy Mmobuosi, to court for misrepresentation following a report by noted short seller Hindenburg Research.
Now, in a potentially significant move, it can be revealed that Levi & Korsinsky are among those spurred into action by HR’s claims which cast doubt on both Tingo’s operations and Mmobuosi’s academic credentials. L&R are regarded as one of the top securities litigation experts in North America and have recovered hundreds of millions of dollars in numerous high stake cases.
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Hide AdThe filed complaint alleges that “Defendants made false statements and/or concealed” among other things that “Mmobuosi fabricated biographical claims about himself”, Tingo published “misleading” images of a planned food processing facility in the west African country, did not have relationships with two farming cooperatives claimed and that revenues from mobile handset leasings were inflated.
Earlier this year, Mmobuosi agreed a price, believed to be in the region of £115m, for United with current owner Prince Abdullah bin Musa’ad bin Abdulaziz Al Saud and paid nearly £9m into an account controlled by United World; the organisation the Saudi Arabian uses to oversee his portfolio of sporting assets which also include Beerschot, Kerala United and Chateauroux. However, negotiations stalled when Mmobuosi failed to gain the necessary approvals from the English Football League, whose jurisdiction United were under before gaining promotion to the Premier League.
Tingo, which refutes HR’s findings, has hired its own team of lawyers to complete an independent investigation into its allegations and deliver a report to independent members of its board.
Mmobuosi met with the EFL to try and convince them of his resources but was unable to do so before the period of exclusivity he had been granted by Prince Abdullah expired. Earlier this month he was granted a diplomatic passport by Malawi, having visited the country to pledge his support for victims of a tropical storm which caused widespread devastation in one region of the country.
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L&R have issued a press release, urging investors who lost money when Tingo’s share price dropped in the wake of HR’s claims to contact them at their New York offices.
Although Mmobuosi used an interview with a Nigerian television channel to insist he remained committed to purchasing United, Prince Abdullah is now thought to be speaking with consortiums and individuals from both the US and his homeland about either buying the club outright or providing extra support as manager Paul Heckingbottom attempts to establish it in the top-flight.
Having finished second in the Championship last term, the asking price for United has now supposedly risen to around £140m, although this will depend on a number of different factors.