Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against Shift4 Payments, Inc.
News provided byKessler Topaz Meltzer & Check LLP
Sep 19, 2023, 8:59 AM ET
RADNOR, Pa., Sept. 19, 2023 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania against Shift4 Payments, Inc. (“Shift4”) (NYSE: FOUR). The action charges Shift4 with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Shift4’s materially misleading statements and omissions to the public, Shift4’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: OCTOBER 19, 2023
CLASS PERIOD: NOVEMBER 10, 2021 THROUGH APRIL 18, 2023
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
SHIFT4’S ALLEGED MISCONDUCT
The Class Period begins on November 10, 2021, when Shift4 issued a shareholder letter before markets opened, announcing the company’s Q3 2021 financial results. In the shareholder letter, the company recorded $19.3 million of customer acquisition costs in the investing activities section of its unaudited Condensed Consolidated Statements of Cash Flows, as well as $25.6 million in net cash provided by operating activities, for the nine months ended September 30, 2021.
On October 21, 2022, Shift4 disclosed in an SEC filing that certain of its financial statements should no longer be relied upon and would need to be restated because of a material weakness in the company’s financial controls, which had caused it to incorrectly treat “customer acquisition costs” as cash used in investing activities rather than cash used in operating activities in its Consolidated Statements of Cash Flows. As a result, Shift4 was forced to negatively revise its net cash provided by operating activities in certain past financial statements. On this news, Shift4’s stock price fell $1.21 per share, or 2.67%, to close at $44.16 per share on October 24, 2022.
Then, on April 19, 2023, market analyst Blue Orca Capital published a report alleging that Shift4 “engaged in a string of highly questionable and hyperaggressive accounting maneuvers seemingly designed to keep the stock afloat,” including “cash flow manipulation” and “inexplicable distributor acquisitions that enabled it to capitalize a major component of COGS.” The report also indicated that Shift4 engaged in unreported related-party transactions and that the company’s questionable accounting maneuvers “inflated 2022 gross profit by 13%, Adj. EBITDA by 34%, and operating income by close to 3x.”
Following this news, Shift4’s stock price fell $5.95 per share, or 8.68%, to close at $62.59 per share on April 19, 2023.
WHAT CAN I DO?
Shift4 investors may, no later than October 19, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Shift4 investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Shift4, O’Meara v. Shift4 Payments, Inc., et al., Case No. 23-cv-03206, is filed in the United States District Court for the Eastern District of Pennsylvania before the Honorable Joseph F. Leeson Jr.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
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