LOS ANGELES, Oct. 11, 2021 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Lightspeed Commerce ("Lightspeed" or the "Company") (NYSE: LSPD) investors that the firm has initiated an investigation into possible securities fraud, and may file a class action on behalf of investors.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The investigation concerns whether Lightspeed and certain of its directors and/or officers have engaged in securities fraud or other business practices that were unlawful. Market analyst Spruce Point Capital Management (“Spruce Point”) published a report on September 29, 2021 regarding Lightspeed as well as a press release summarizing its findings. In this summary it was stated, among other allegations, that “[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’”; that there was “[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”; that Lightspeed’s “[r]ecent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices”; and that there were “[w]eak governance standards and worrisome auditor oversight by PwC under a concerning CFO, who was tied to a prior technology roll-up scandal.” On September 29, 2021, Lightspeed’s share price fell $13.73 per share, or 12.2%, to close at $98.77 on this news per share.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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