UPDATED CLASS PERIOD: Lightspeed Commerce Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit – LSPD

SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that any purchaser or purchaser of Lightspeed Commerce Inc. (NYSE: LSPD) securities will be available between September 11, 2020 and November 3, 2021, inclusive (the “Class Period”) through November 18, 2020 January 2022 have time to petition for appointment as lead plaintiff in the Lightspeed Commerce class action lawsuit. The first complaint filed – entitled Nath v. Lightspeed Commerce Inc., No. 21-cv-06365 (EDNY) – was filed on November 16, 2021 alleging Lightspeed Commerce along with some of its top executives for violating the Stock Exchange Act of 1934. A similar lawsuit – Pappas v. Lightspeed Commerce Inc., No. 21-cv-10304 – is pending in the southern borough of New York.

If you would like to stand as the lead plaintiff in the Lightspeed Commerce class action lawsuit, please provide your information by clicking here. You can also contact Attorney Mary K. Blasy of Robbins Geller by phone at 800 / 449-4900 or by email at [email protected]. Motions from the lead plaintiffs for the Lightspeed Commerce class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATION: Lightspeed Commerce offers commerce-enabled software as a service platform for small and medium-sized businesses, retailers, restaurants and golf course operators in Canada, the US, Germany, Australia and internationally. On September 15, 2020, Lightspeed Commerce completed its initial public offering (“IPO”), listing nearly 11 million common shares on the New York Stock Exchange for proceeds of more than $ 332 million. Also completed on the same day was a second sale of more than 2 million shares by certain selling shareholders for gross proceeds of more than $ 65 million.

Lightspeed Commerce’s class action lawsuit alleges that during the collection period, defendants made false and misleading statements and failed to disclose: (i) Lightspeed Commerce overestimated its pre-IPO business metrics and financial prospects by increasing its true customer base by 85. overrated%; (ii) Lightspeed Commerce overestimated its pre-IPO business metrics and financial prospects by overestimating its True Gross Transaction Volume (“GTV”) – a payment volume metric referred to by a former employee as “Smoke and Mirror” – by 10%; (iii) Lightspeed Commerce then exaggerated its business metrics and financial outlook by hiding declining organic growth and business deterioration; (iv) Lightspeed Commerce also exaggerated its business metrics and financial outlook by claiming that its Average Revenue Per User (“ARPU”) is increasing; (v) Lightspeed Commerce had gone on an acquisition frenzy with costs rising with no clear path to profitability, while management had aggressive sales reporting practices; and (vi) Defendants operated Lightspeed Commerce with flawed internal controls and ineffective oversight of their accounting practices by their external auditing firm.

On September 29, 2021, Spruce Point Capital Management published a report on Lightspeed Commerce and published a press release summarizing the results. The press release states, among other things, that “[e]Evidence shows that Lightspeed massively inflated its business prior to going public and exaggerated its customer base by 85% and [GTV] by 10% “- a measure of the volume of payments that a former employee called” smoke and mirrors “; that it was there “[e]Evidence of declining organic growth and business deterioration from Lightspeed’s IPO, despite management claims that [ARPU] increases; and that from Lightspeed Commerce [r]The current acquisition frenzy has resulted in rising costs with no clear path to profitability, while management has aggressive sales reporting practices. ”On the news, Lightspeed Commerce’s share price fell more than 12%.

Then, on November 4, 2021, Lightspeed Commerce published a press release announcing its financial results for the second quarter of 2022 for the interim reporting period ended September 30, 2021. While Lightspeed Commerce revenue rose 193% year-over-year to $ 133.2 million in the second quarter of 2022, full half of that revenue came from new business acquisitions, while organic revenue in its core segments – Subscriptions and Transcriptions – only increased 58%. increase – well below the 78% growth that Lightspeed Commerce just reported on 3rd Spruce Point Capital report results. More critically, Lightspeed Commerce’s predictions for the remainder of fiscal 2022 (“FY22”) showed that previous revenue growth was indeed primarily driven by, and that, the acquisitions, as called for in the Spruce Point Capital report The tail wind quickly subsided. For the third quarter of 2022, Lightspeed Commerce only forecast revenue in the range of $ 140 million to $ 145 million – or poor sequential revenue growth of 7%. And for FY22, Lightspeed Commerce is aiming for sales of only 520 to 535 million US dollars, which does not imply any sequential growth in the fourth quarter of 2022. As a result of this news, Lightspeed Commerce’s share price continued to fall nearly 28%, causing further damage to investors.

LEAD ACTION: The Private Securities Litigation Reform Act of 1995 allows any investor who has purchased Lightspeed Commerce securities during the class action period to seek appointment as the lead plaintiff in the Lightspeed Commerce class action. A lead plaintiff is generally the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in directing the Lightspeed Commerce class action lawsuit. The lead plaintiff can select a law firm of their choice to bring the Lightspeed Commerce class action lawsuit. An investor’s ability to intervene in a possible future recovery of the Lightspeed Commerce class action lawsuit does not depend on whether or not they act as the lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller’s attorneys have won many of the largest shareholder recoveries in history, including the largest securities class action of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller in first place for reclaiming $ 1.6 billion for investors last year, more than double the amount made by any other securities plaintiff firm was drafted. More information is available at http://www.rgrdlaw.com.

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