A securities class action has been filed against Global Payments, Inc. (GPN) on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Global Payments securities between October 31, 2019 through October 18, 2022. This case has been filed in the USDC – N.D.GA.
Global Payments is a Georgia company headquartered in Atlanta, Georgia. Global Payments is a leading payments technology company that delivers innovative software and services to merchants and financial institutions worldwide. Global Payments is a Fortune 500 company and is a member of the S&P 500. One of Global Payments’ wholly owned subsidiaries is Active Network, which provides third-party registration and payment processing services to consumers signing up to participate in events. Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (a) Active Network used deceptive and abusive acts and practices to dupe its customers into enrolling into Active Network’s own discount club; (b) since July 2011, Active Network, and by extension, Global Payments, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; (c) since 2011, Global Payments failed to properly monitor its subsidiary from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers; (d) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; (e) Global Payments’ revenues were in part the product of Active Network’s unlawful conduct and thus unsustainable; and (f) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On October 18, 2022, the truth about Global Payments’ practices was disclosed when the Consumer Financial Protection Bureau (“CFPB”) issued a Complaint against Active Network for illegally cramming consumers with membership fees.
On this news, the price of Global Payments’ stock fell precipitously and closed at $113.67 on October 18, 2022.