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OAKLAND, Calif.–(BUSINESS WIRE)–Nov 19, 2021–
Shares of Lightspeed Commerce Inc. dropped 12% on September 29, 2021, after a Spruce Point Capital Management report claimed Lightspeed “massively” overstated its customer count and aggressively promoted other misleading metrics to hide poor revenue growth. Lightspeed then plummeted as much as 30% in intraday trading on November 4, 2021 after its quarterly report offered weak guidance. A Lightspeed Securities Class Action Lawsuit has been filed, and investors who lost money in Lightspeed (NASDAQ: LSPD) are encouraged to contact Gibbs Law Group for more information about their legal rights and options for participation.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Wednesday, September 29, 2021, Spruce Point Capital Management issued a report denouncing commerce platform company Lightspeed for allegedly misleading investors by inflating its growth prospects. The report claims Lightspeed “overstat[ed] its customer count by 85%” before it IPO’d in September 2020. The report further claims that in its prospectus at its IPO, Lightspeed claimed a Total Addressable Market of $113 billion that would grow to $542 billion, but a more recent prospectus in 2021 gave a TAM of only $16 billion, an 85% drop. Spruce Point claims most price targets of Lightspeed are “inflated” by the company’s many recent acquisitions, which one former employee reportedly characterized as “plagued by growth issues.”
Several days later, when Lightspeed issued its 2022 Q2 report on November 4, 2021, the company issued guidance of approximately $520 million to $535 million for its full fiscal year which, according to Motley Fool, seems to imply “no” sequential growth in Q4. According to Motley Fool, that may indicate to investors that Lightspeed’s revenue growth has been “primarily” driven by acquisitions.
Following this quarterly report, Lightspeed’s stock price plunged by as much as 30% in intraday trading on November 4, 2021, causing significant harm to investors.
What Should Lightspeed Investors Do?
If you invested in Lightspeed, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
This press release may constitute Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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CONTACT: EILEEN EPSTEIN
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Gibbs Law Group
Copyright Business Wire 2021.
PUB: 11/19/2021 12:46 AM/DISC: 11/19/2021 12:46 AM