An investigation on behalf of investors in Lightspeed Commerce Inc. (NYSE:LSPD) shares over potential wrongdoing at Lightspeed Commerce Inc. was announced.
San Diego, CA -- (SBWIRE) -- 04/04/2022 -- An investigation was announced over potential breaches of fiduciary duties by certain officers and directors at Lightspeed Commerce Inc.
Investors who purchased shares of Lightspeed Commerce Inc. (NYSE: LSPD) have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain Lightspeed Commerce Inc. directors breached their fiduciary duties and caused damage to the company and its shareholders.
Montreal, Canada, based Lightspeed Commerce Inc. provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally. Lightspeed Commerce Inc. reported that its annual Total Revenue rose from $120.63 million for the 12 month period that ended on March 31, 2020, to $221.72 million for the 12 month period that ended on March 31, 2021, and that its Net Loss over those respective time periods increased from $53.53 million to $124.27 million.
On September 29, 2021, Spruce Point Capital Management, LLC published a short-seller report on Lightspeed. In the report, Spruce Point made the following claims:
"Evidence 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.'
"Evidence of declining organic growth and business deterioration through Lightspeed's IPO, despite management's claims that Average Revenue Per User ("ARPU") is increasing."
"Recent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices."
"Weak governance standards and worrisome auditor oversight by PwC under a concerning CFO, who was tied to a prior technology roll-up scandal."
Shares of Lightspeed Commerce Inc. (NYSE: LSPD) declined from $122.53 per share on September 22, 2021, to $88.71 per share on October 4, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Lightspeed Commerce Inc. (NYSE: LSPD) common shares between September 11, 2020 and September 28, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 11, 2020 and September 28, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that Lightspeed had misrepresented the strength of its business by, inter alia, overstating its customer count, gross transaction volume ("GTV"), and increase in Average Revenue Per User ("ARPU"), while concealing the Company's declining organic growth and business deterioration, that Lightspeed had overstated the benefits and value of the Company's various acquisitions, that accordingly, the Company had overstated its financial position and prospects, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Lightspeed Commerce Inc. (NYSE: LSPD) have certain options and should contact the Shareholders Foundation.
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