NEW YORK, April 06, 2022 (GLOBE NEWSWIRE) — Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a global shareholder and consumer law firm, is advising investors that a class action lawsuit in securities was filed against Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM) and certain other defendants, alleging violations of federal securities laws. If you purchased shares of Affirm between February 12, 2021 and February 10, 2022, we encourage you to contact Joe Pettigrew for more information at (844) 818-6982, or [email protected]. The deadline for the lead applicant is April 29, 2022.
Affirm claims to be a “next generation platform for digital and mobile-first commerce”.
The complaint alleges that the company and other defendants made materially false and misleading statements regarding Affirm’s business, operations and compliance policies. Specifically, the Company did not disclose the following: (i) Affirm’s Buy Now, Pay Later (“BNPL”) service facilitated excessive consumer indebtedness, regulatory arbitrage and collection of data ; (ii) the foregoing has subjected Affirm to increased risk of regulatory review and enforcement action; (iii) Affirm maintained inadequate disclosure controls and procedures and internal control over financial reporting; (iv) Affirm’s tweet for its second quarter 2022 financial results (discussed below) contained selected metrics that gave the impression that the company performed better than it actually did; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it had opened an investigation into Affirm’s BNPL payment service. The CFPB said it was concerned about how BNPL led to “debt accumulation, regulatory arbitrage and data collection” and was seeking data on the risks and benefits of the products.
On this news, Affirm’s stock price fell $11.74 per share, or 10.58%, to close at $99.24 per share on December 16, 2021.
Then, on February 10, 2022, at approximately 1:15 p.m. EST, Affirm posted a tweet from its official account in which it disclosed certain measures of its second quarter 2022 financial results. The tweet, which was posted before publication Affirm forecast of its financial results, described a very successful quarter, including a 77% revenue increase.
The lawsuit alleges that this tweet drove Affirm’s stock price up nearly 10% in intraday trading. The lawsuit also alleges that the tweet was materially misleading, in that it failed to disclose full details of Affirm’s second quarter financial results.
Affirm deleted the tweet and released its full second quarter financial results ahead of schedule. The full financial results were disappointing, with Affirm posting a loss of $0.57 per share, against analyst expectations of $0.37 per share.
On news of the deleted tweet and subsequent release of the full earnings report, Affirm’s stock price fell $24.89 per share from an intraday high of $83.57 per share. on February 10, 2022, to close at $58.68 per share on February 10. 2022 – a decline of around 32%.
Lead Applicant Deadline
The lead plaintiff’s deadline in this action is April 29, 2022. Any member of the proposed class may seek to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
what you can do
If you bought Confirm stock between February 12, 2021 and February 10, 2022or if you have any questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or [email protected].
Scott+Scott has significant experience in pursuing major securities, antitrust and consumer rights actions across the United States. The firm represents pension funds, foundations, individuals and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia and Ohio.
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