Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Lightspeed To Contact Him Directly To Discuss Their Options
NEW YORK - (NewMediaWire) - January 18, 2022 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Lightspeed Commerce Inc. (“Lightspeed” or the “Company”) (NYSE: LSPD) and reminds investors of the January 18, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Lightspeed stock or options between September 11, 2020 and November 3, 2021 and would like to discuss your legal rights, Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/LSPD.
There is no cost or obligation to you.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Lightspeed had misrepresented the strength of its business by, inter alia, overstating its customer count, gross transaction volume (“GTV”), and increase in Average Revenue Per User (“ARPU”), while concealing the Company’s declining organic growth and business deterioration; (2) Lightspeed had overstated the benefits and value of the Company’s various acquisitions; (3) accordingly, the Company had overstated its financial position and prospects; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On September 29, 2021, market analyst Spruce Point Capital Management published a report regarding Lightspeed. Spruce Point also issued a press release summarizing its findings. The summary stated, among other things, that “evidence shows that Lightspeed massively inflated its business pre-IPO, overstating its customer count by 85% and gross transaction volume (‘GTV’) by 10% – a payment volume metric that a former employee described as ‘smoke and mirrors’”; that there was “evidence of declining organic growth and business deterioration through Lightspeed’s IPO, despite management’s claims that Average Revenue Per User (‘ARPU’) is increasing”; and that the Company’s recent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices.
On this news, Lightspeed’s stock price fell $13.73 per share, or 12.2%, to close at $98.77 per share on September 29, 2021.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Lightspeed’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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