A lawsuit was filed on behalf of investors in Affirm Holdings, Inc. (NASDAQ: AFRM) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/09/2023 -- An investor, who purchased shares of Affirm Holdings, Inc. (NASDAQ: AFRM), filed a lawsuit over alleged violations of Federal Securities Laws by Affirm Holdings, Inc.
Investors who purchased shares of Affirm Holdings, Inc. (NASDAQ: AFRM) have certain options and for certain investors are short and strict deadlines running. Deadline: February 6, 2023. NASDAQ: AFRM investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
San Francisco, CA based Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The Company's platform includes point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Particularly, Affirm Holdings, Inc. offers a payment service known as "buy-now, pay-later" ("BNPL"), which allows consumers to purchase a product immediately and pay for it at a later time, usually over a series of installments. According to the Company, "[u]nlike legacy payment options and our competitors' product offerings, which charge deferred or compounding interest and unexpected costs, we disclose up-front to consumers exactly what they will owe?—?no hidden fees, no penalties."
On December 16, 2021, the Consumer Financial Protection Bureau ("CFPB") announced that it had launched an inquiry into Affirm's BNPL payment service, along with four other companies offering BNPL. The CFPB indicated that it was concerned about how BNPL leads to "accumulating debt, regulatory arbitrage, and data harvesting," and is seeking data on the risks and benefits of the products. In a statement addressing BNPL services, the CFPB Director stated, "[t]he consumer gets the product immediately but gets the debt immediately too."
The plaintiff claims that between February 12, 2021 and December 15, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that Affirm's BNPL service facilitated excessive consumer debt, regulatory arbitrage, and data harvesting, that the foregoing subjected Affirm to a heightened risk of regulatory scrutiny and enforcement action, and that as a result, the Company's public statements were materially false and misleading at all relevant times
Those who purchased shares of Affirm Holdings, Inc. (NASDAQ: AFRM) have certain options and should contact the Shareholders Foundation.
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