LIGHTSPEED SHAREHOLDERS: January 18, 2022 Filing Deadline in Class Action – Contact Lieff Cabraser
SAN FRANCISCO–(BUSINESS WIRE)–$LSPD #InvestorAlert–The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Lightspeed Commerce Inc. (“Lightspeed” or the “Company”) (NYSE: LSPD) (TSX: LSPD) between September 11, 2020 and November 3, 2021, inclusive (the “Class Period”).
If you purchased or otherwise acquired Lightspeed securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 18, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Lightspeed investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, or email [email protected], or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the Lightspeed Securities Class Litigation
Lightspeed, incorporated in Canada and headquartered in Montréal, provides a Software as a Service (SaaS) platform for small and midsize businesses.
The action alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (a) Lightspeed had overstated the strength of its business including its customer count, gross transaction volume, and increase in Average Revenue Per User and concealed the Company’s declining organic growth and business; (b) Lightspeed had overstated the benefits and value of the Company’s various acquisitions; and (c) consequently, the Company had overstated its financial position and prospects.
On September 29, 2021, market analyst Spruce Point Capital Management (“Spruce Point”) reported that Lightspeed had “massively inflated its business pre-IPO, overstating its customer count by 85% and gross transaction volume (‘GTV’) by 10%.” Spruce Point further reported that Lightspeed’s growth had declined and business had deteriorated despite management’s claims that Average Revenue Per User was increasing, and that Lightspeed’s “[r]ecent acquisition spree has come at escalating costs with no clear path to profitability.” On this news, the price of Lightspeed’s stock trading on the NYSE fell $13.73 per share, or 12.2%, from its closing price of $112.50 on September 28, 2021, to close at $98.77 per share on September 29, 2021.
On November 4, 2021, before trading opened, Lightspeed announced its fiscal second quarter of 2022 financial results for the interim period ended September 30, 2021. Lightspeed revealed that roughly half of its 2Q:22 revenue growth on a year-over-year basis stemmed from new business acquisitions, while organic revenue in its core segments of subscriptions and transcriptions grew only 58%, far below the 78% growth the Company reported. Further, Lightspeed’s guidance for the remainder of its fiscal year showed that its acquisitions had primarily accounted for its earlier revenue growth, as Spruce Point had claimed. The Company was now projecting only a 7% sequential revenue growth for its third quarter of 2022 and no sequential growth for the fourth quarter of 2022. On this news, the price of Lightspeed stock trading on the NYSE declined more than $27.61 per share, or 27.9% from its close of $98.97 per share on November 3, 2021, to close at $71.36 per share on November 4, 2021, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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Contacts
Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
Telephone: 1-800-541-7358
