SAN DIEGO, November 29, 2021--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that a class action was filed on behalf of all persons and entities that purchased Lightspeed Commerce Inc. (NYSE: LSPD) securities between September 11, 2020 and September 28, 2021. Lightspeed provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators internationally.
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Lightspeed Commerce Inc. (LSPD) Misled Investors Regarding the Strength of its Business
According to the complaint, during the class period, defendants made materially false and misleading statements and/or failed to disclose Lightspeed had: (i) misrepresented the strength of its business by, among other things, 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, and (ii) overstated the benefits and value of the its various acquisitions.
On September 29, 2021, Spruce Point Capital Management published a report regarding Lightspeed, stating: "[e]vidence 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.’" The report also revealed "[e]vidence 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 "[r]ecent 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 over 12%, to close at $98.77 per share on September 29, 2021.
If you purchased shares of Lightspeed Commerce Inc. (LSPD) securities between September 11, 2020 and September 28, 2021, you have until January 18, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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