Pomerantz law firm announces the filing of a class action
NEW YORK, November 16, 2021 (GLOBE NEWSWIRE) – Pomerantz LLP announces that a class action lawsuit has been filed against Lightspeed Commerce, Inc. (âLightspeedâ or the âCompanyâ) (NYSE: LSPD) and certain of its officers. The class action suit, filed in the United States District Court for the Eastern District of New York, and registered as 21-cv-06365, is in the name of a group consisting of all persons and entities other than the defendants who purchased or otherwise acquired Lightspeed securities between September 11, 2020 and September 28, 2021, both dates inclusive (the âClass Periodâ), seeking to recover damages caused by Defendants in violation of federal securities laws and to exercise remedies under sections 10 (b) and 20 (a)) of the Securities Exchange Act of 1934 (the âExchange Actâ) and rule 10b-5 promulgated thereunder, against the Company and some of its senior officials.
If you are a shareholder who purchased Lightspeed securities during the Class Period, you have until January 18, 2022 to ask the court to appoint you as the primary claimant for the Class Action. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Lightspeed provides a software as a service (SaaS) platform enabling commerce for small and medium businesses, retailers, restaurants and golf course operators in Canada, United States, Germany, Australia and abroad. The Company’s cloud platforms are designed with interrelated elements, such as the omnichannel customer experience, a comprehensive back-office operations management suite to improve efficiency and customer understanding, and facilitate payments. . Lightspeed’s platform features include full omnichannel capabilities, advance ordering and curbside pickup, point of sale, product and menu management, employee and inventory management, analysis and reporting, multi-site connectivity, loyalty, customer management and tailor-made financial solutions.
The complaint alleges that throughout the Class Period, the Defendants made materially false and misleading representations regarding the Company’s business, operational and compliance policies. Specifically, the Defendants made false and / or misleading statements and / or failed to disclose that: (i) Lightspeed had distorted the soundness of its business by: among others, overestimating its number of customers, its gross transaction volume (âGTVâ) and the increase in average revenue per user (âARPUâ), while masking the decline in organic growth and the deterioration of the Company’s activities; (ii) Lightspeed overestimated the benefits and value of the Company’s various acquisitions; (iii) as a result, the Company overvalued its financial position and prospects; and (iv) accordingly, the Company’s public statements were materially false and misleading at all material times.
On September 29, 2021, market analyst Spruce Point Capital Management released a report regarding Lightspeed. Spruce Point also issued a press release summarizing its findings. The summary stated, among other things, that â[e]evidence shows that Lightspeed massively inflated its business before the IPO, overestimating its customer base by 85% and gross transaction volume (“GTV”) by 10% – a measure of payment volume that a former employee described as “smoke and mirrors”; that there was “[e]evidence of declining organic growth and deterioration in business from Lightspeed IPO, despite management claims that average revenue per user (âARPUâ) is increasing “; and that the Company “[r]The recent wave of acquisitions has resulted in escalating costs with no clear path to profitability, as management continues aggressive revenue reporting practices.
Following this news, the Lightspeed 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 recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the Dean of the Class Actions Bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980