INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Lightspeed Commerce Inc. (LSPD) Investors with an Expanded Class Period and Encourages Investors to Contact the Firm Before January 18, 2022

NEW YORK, Dec. 08, 2021 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Lightspeed Commerce Inc. (“Lightspeed” or the “Company”) (NYSE: LSPD) securities from September 11, 2020 through November 3, 2021, inclusive (the “Class Period”). Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Lightspeed provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally. The Company’s cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers’ efficiency and insight, and the facilitation of payments. Lightspeed’s platform functionalities include full omni-channel capabilities, order-ahead and curbside pickup, point of sale, product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, loyalty, customer management, and tailored financial solutions.

On September 29, 2021, Spruce Point Capital Management (“Spruce Point”), a market analyst, published a report regarding Lightspeed. Spruce Point also issued a press release summarizing its findings. The summary stated, among other things, 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”; 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 declined by $13.73 per share, or approximately 12.2%, from $112.50 per share to close at $98.77 per share on September 29, 2021.

Then on November 4, 2021, before the opening of trading, Lightspeed issued a press release announcing its second quarter 2022 (“2Q22”) financial results for the interim period ended September 30, 2021. While the Company’s 2Q22 revenue grew 193% on a year-over-year basis to $133.2 million, a full half of that revenue came from new business acquisitions, while organic revenue in its core segments – subscriptions and transcriptions – grew a mere 58% – well below the 78% growth the Company had just touted on November 3, 2021 in disputing the Spruce Point Report findings. More critically, the Company’s guidance for the rest of its fiscal year 2022 (“FY22”) demonstrated that its earlier revenue growth had indeed been driven primarily by the acquisitions as the Spruce Point Report had charged, and that those tailwinds were now rapidly fading. For its third quarter 2022 (“3Q22”), Lightspeed was now only forecasting revenues in the range of $140 million to $145 million. And for FY22, the Company was now only guiding for revenues of $520 million to $535 million, implying no sequential growth whatsoever in the Company’s fourth quarter 2022 (“4Q22”). On this news, Lightspeed’s stock price declined by $27.61 per share, or approximately 27.9%, from $98.97 per share to close at $71.36 per share on November 4, 2021.

The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that the Company: (i) overstated its pre-IPO business metrics and financial prospects by overstating its true customer count by 85%; (ii) overstated its pre-IPO business metrics and financial prospects by overstating its true gross transaction volume– a payment volume metric that a former employee describes as “smoke and mirrors” – by 10%; (iii) overstated its business metrics and financial prospects by concealing declining organic growth and ongoing business deterioration; (iv) overstated its business metrics and financial prospects by claiming that its Average Revenue Per User was increasing; (v) had undertaken an acquisition spree at escalating costs with no clear path to profitability, while its management pursued aggressive revenue reporting practices; and (vi) had been operating the Company with defective internal controls and ineffective oversight of its accounting practices by its outside audit firm.

If you purchased or otherwise acquired Lightspeed securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
[email protected]

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