A securities class action has been filed against Lightspeed Commerce Inc. (LSPD) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lightspeed securities between September 11, 2020 through September 28, 2021. This case has been filed in the USDC – E.D.N.Y.
On September 29, 2021, market analyst Spruce Point Capital Management (“Spruce Point”) published a report regarding Lightspeed. Spruce Point also published a press release summarizing its findings. The summary 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”; that the Company’s “[r]ecent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices”; and that there were “[w]eak governance standards and worrisome auditor oversight by PwC under a concerning CFO, who was tied to a prior technology roll-up scandal.”
On this news, Lightspeed’s share price fell $13.73 per share, or 12.2%, to close at $98.77 per share on September 29, 2021.