Paysign, Inc. Class Action Lawsuit
- Company Name
- Paysign, Inc.
- Stock Symbol
- Class Period
- March 12, 2019 to March 31, 2020
- District of Nevada
The Paysign, Inc. securities class action lawsuit charges Paysign and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Paysign publicly traded securities between March 12, 2019 and March 31, 2020 (the “Class Period”). The Paysign securities class action lawsuit was commenced on March 19, 2020 in the District of Nevada and is captioned and is captioned Shi v. Paysign, Inc., No. 20-cv-00553.
Paysign provides prepaid card programs and processing services under the PaySign brand to corporations, government agencies, universities, and other organizations. Paysign’s services include transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through Paysign’s proprietary card-processing platform.
The Paysign securities class action lawsuit alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that Paysign’s internal control over financial reporting and its information technology general controls were not effective. As a result of this information being withheld from the market, Paysign securities traded at artificially inflated prices during the Class Period, with the price of Paysign’s stock reaching a high of more than $17 per share.
Then, on March 16, 2020, before the market opened, Paysign filed a Form 12b-25 with the U.S. Securities and Exchange Commission disclosing that it was unable to timely file its annual report for the fiscal year ended December 31, 2019 because it needed additional time to complete its financial audit for the year. In addition, Paysign reported that, “in the course of completing its assessment of internal controls over financial reporting for 2019 and Paysign’s initial year of compliance with Sarbanes-Oxley 404b, management identified material weaknesses related to (i) assessment of internal controls over financial reporting and (ii) information technology general controls.” On this news, the price of Paysign shares fell nearly 17% to close at $4.59 per share on March 16, 2020.
Then, after the market closed on March 31, 2020, Paysign announced that it was again delaying the release of its 2019 financial results. On this news, shares fell another 16%, to close at $4.35 on April 1, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.