NEW YORK–(BUSINESS WIRE)–The law firm Kirby McInerney LLP investigation of potential claims against Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM). The investigation focuses on whether Affirm violated federal securities laws and/or engaged in other illegal business practices.
Affirm, headquartered in San Francisco, CA, operates a digital and mobile commerce platform in the United States and Canada. Affirm’s platform includes a point-of-sale payment solution for consumers, commerce solutions for merchants and a consumer-centric app.
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it had launched an investigation into the payment service offered by Affirm known as “buy-now, pay-later” (“BPL”). The CFPB issued an order to Affirm, along with four other companies offering BNPL, seeking information about Affirm’s facilitation of excessive consumer debt, regulatory arbitrage and data collection. The CFPB has expressed concern about “debt accumulation, regulatory arbitrage and data collection” and is seeking data on product risks and benefits. In a statement to BNPL services, CFPB Director Rohit Chopra said: “[t]The consumer receives the product immediately, but he also incurs the debt immediately. On this news, Affirm’s stock price fell $11.74 per share, or approximately 10.6%, from $110.98 per share to close at $99.24 per share on December 16, 2021.
Then, on February 10, 2022, Affirm announced details of the company’s financial performance, including that its sales grew 77%, in the second quarter of fiscal 2022 (ended December 31, 2021), suggesting that revenues would exceed expectations. Later in the day, the company deleted the previous tweet and announced its second quarter 2022 financial results, including a net loss of $159.7 million that missed analyst estimates of $100.3 million. on average. On this news, Affirm’s stock price declined $16.00 per share, or approximately 21.4%, from $74.68 per share to close at $58.68 per share on February 10, 2022.
If you have purchased or otherwise acquired Affirm securities, have information or would like to know more about such claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by completing this Contact formto discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.
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