Veon looks likely to face class action from shareholders after a US district judge gave permission for the suit, based on accusations the firm failed to disclose details of a bribery investigation in Uzbekistan under its former guise of VimpelCom.
Reuters reported comments from US District Judge Andrew Carter ruling shareholders in the company from March 12 2014 to November 2015 were able to take part in action against the firm for releasing misleading public statements.
Veon, formerly VimpelCom, admitted in 2016 to bribing a senior Uzbek official and agreed to pay fines in both the US and Netherlands following a lengthy investigation into the matter.
Following the scandal, there has been a management upheaval at the company and complete rebrand.
Judge Carter’s decision is a result of a case brought in New York on behalf of company investors led by Westway Alliance Corp.
The suit was presented on behalf of shareholders from December 2010 to November 2015, however the judge ruled those who sold shares prior to the company disclosing regulatory problems in 2014 would be excluded from the new case.
VimpelCom changed its name to Veon in March 2017 and changed the focus of the business – which comprises one of the world’s largest mobile operator groups. Its largest operations are in Eastern Europe and Asia, with the company reporting over 60 million connections in Russia and over 9 million in Uzbekistan.