NEW YORK, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired LivePerson, Inc. (“LivePerson” or the “Company”) (NASDAQ: LPSN) securities between May 10, 2022 and March 16, 2023, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s disclosure controls and procedures contained a material weakness; (ii) accordingly, the Company maintained deficient internal controls over its financial reporting; (iii) as a result, the Company’s third quarter 2022 financial statements failed to disclose the suspension of WildHealth’s Medicare reimbursements in connection with the Program and the resulting negative impact on the Company’s future revenues; and (iv) accordingly, the Company had overstated its future financial position and/or prospects.
On February 28, 2023, the Company revealed that, as a result of the Company’s acquisition of WildHealth, “[LivePerson] requires more time to perform additional review and testing of revenue recognition with respect to a recently discontinued WildHealth program, for which Medicare reimbursement is suspended pending further governmental review, and to complete its in-process review of internal controls and procedures.” On this news, the price of the Company’s stock fell more than 14%, according to the complaint.
On March 6, 2023, the Company disclosed that “the referenced review of WildHealth revenue is anticipated to affect fourth quarter 2022 revenue attributable to WildHealth’s participation in a Medicare demonstration program, due to suspension in November 2022 of Medicare reimbursements under the program and pending further governmental review.” On this news, the price of the Company’s stock fell nearly 7%.
On March 16, 2023, the Company revealed that “due to certain control deficiencies which aggregated to a material weakness in the Company’s internal control over financial reporting . . ., our disclosure controls and procedures were not effective as of December 31, 2022” and “[t]he control deficiencies, which in aggregate constitute a material weakness, were identified in connection with the Company’s previously disclosed review of certain transactions related to its subsidiary WildHealth.” On this news, the price of the Company’s stock fell nearly 58%.
Investors who purchased or otherwise acquired shares of LivePerson should contact the Firm prior to the January 30, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
