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Lightspeed Commerce Inc. Class Action Lawsuit - LSPD

Company Name
Lightspeed Commerce Inc.
Stock Symbol
LSPD
Class Period
September 11, 2020 to September 28, 2021
Motion Deadline
January 15, 2022
Court
Eastern District of New York
47 days left to seek lead plaintiff status

Case Summary

The Lightspeed Commerce class action lawsuit seeks to represent purchasers of Lightspeed Commerce Inc. (NYSE: LSPD) securities between September 11, 2020 and September 28, 2021, inclusive (the “Class Period”) and charges Lightspeed Commerce and certain of its top executives with violations of the Securities Exchange Act of 1934.  The Lightspeed Commerce class action lawsuit was commenced on November 16, 2021 in the Eastern District of New York and is captioned Nath v. Lightspeed Commerce Inc., No. 21-cv-06365.

If you wish to serve as lead plaintiff of the Lightspeed Commerce class action lawsuit, please provide your information by clicking here.  You can also contact attorney Mary K. Blasy of Robbins Geller by calling 800/449-4900 or via e-mail at mblasy@rgrdlaw.com.  Lead plaintiff motions for the Lightspeed Commerce class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: Lightspeed Commerce provides commerce enabling software as a service platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally.

The Lightspeed Commerce class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Lightspeed Commerce had misrepresented the strength of its business by, among other things, overstating its customer count, gross transaction volume, and increase in Average Revenue Per User, while concealing Lightning Commerce’s declining organic growth and business deterioration; (ii) Lightspeed Commerce had overstated the benefits and value of Lightspeed Commerce’s various acquisitions; (iii) accordingly, Lightspeed Commerce had overstated its financial position and prospects; and (iv) as a result, Lightspeed Commerce’s public statements were materially false and misleading at all relevant times.

On September 29, 2021, Spruce Point Capital Management published a report regarding Lightspeed Commerce and also issued a press release summarizing its findings.  The release 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 Lightspeed Commerce’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 Commerce’s stock price fell by more than 12%, damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Lightspeed Commerce securities during the Class Period to seek appointment as lead plaintiff in the Lightspeed Commerce class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Lightspeed Commerce class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Lightspeed Commerce class action lawsuit.  An investor’s ability to share in any potential future recovery of the Lightspeed Commerce class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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