SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Lightspeed Commerce, Inc., of Class Action Lawsuit and Upcoming Deadline
New York, New York – (Newsfile Corp. – Nov. 28, 2021) – Pomerantz LLP announces that a class action lawsuit has been filed against Lightspeed Commerce, Inc. (“Lightspeed” or the “Company”) (NYSE: LSPD) and some of his officers. The class action lawsuit, filed in the United States District Court for the Eastern District of New York and filed on 21-cv-06365, is on behalf of a group comprised of all natural and legal persons other than the defendants, the Lightspeed – Purchased or otherwise acquired securities between September 11, 2020 and September 28, 2021, both inclusive (the “Collection Period”), to compensate for damages caused by Defendants’ violations of federal securities laws and to seek legal redress under the Prosecuting Sections 10 (b) and 20 (a.)) Of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 enacted thereunder against the Company and some of its top officials.
If you are a shareholder who acquired Lightspeed securities during the class action period, you have until January 18, 2022 to request the court to appoint you as the lead plaintiff for the class action. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this promotion, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW) toll free ext. 7980. Inquiries by email are encouraged to include their postal address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Lightspeed offers a commerce-enabling Software as a Service (SaaS) platform for small and medium-sized businesses, retailers, restaurants and golf course operators in Canada, the USA, Germany, Australia and internationally. The company’s cloud platforms are built upon each other such as omni-channel consumer experience, a comprehensive back office operations management suite to improve customer efficiency and insight, and facilitate payments. Lightspeed’s platform capabilities include full omni-channel capabilities, pre-order and roadside pick-up, point of sale, product and menu management, employee and inventory management, analytics and reporting, cross-location connectivity, loyalty, customer management and bespoke financial solutions.
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The complaint alleges that during the class action period, defendants made essentially false and misleading statements about the company’s business, operational and compliance policies. In particular, Defendants have made false and / or misleading statements and / or failed to disclose that: (i) Lightspeed has misrepresented the strength of its business by, among other things, exaggerating the number of customers, gross transaction volume (“GTV”) and growth in the Average Revenue Per User (“ARPU”) while masking the company’s declining organic growth and business deterioration; (ii) Lightspeed had overestimated the benefits and value of the company’s various acquisitions; (iii) accordingly, the Company had overstated its financial condition and prospects; and (iv) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
On September 29, 2021, market analyst Spruce Point Capital Management published a report on Lightspeed. Spruce Point also issued a press release summarizing the results. The summary states, among other things, that “[e]Evidence shows that Lightspeed was massively bloating its business prior to going public, overvaluing its customer base by 85% and gross transaction volume (‘GTV’) by 10% – a payment volume metric that a former employee referred to as ‘smoke and mirrors’ was there “[e]Evidence of declining organic growth and business deterioration from Lightspeed’s IPO, despite management claims that Average Revenue Per User (‘ARPU’) is increasing “; and that the”[r]The ecent acquisition frenzy has resulted in soaring costs with no clear path to profitability, while management has aggressive sales reporting practices. “
Following the news, Lightspeed’s share price fell $ 13.73 per share, or 12.2%, to close at $ 98.77 per share on September 29, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is one of the leading law firms in corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, best known as the Dean of the Class Action Chamber, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz is continuing the tradition he founded and fighting for the rights of victims of securities fraud, breach of duty of loyalty and corporate misconduct. The company has collected numerous millions of dollars in damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105499