LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM) titles between February 12, 2021 and February 10, 2022, inclusive (the “Class Period”). Confirmed investors have up to April 29, 2022 to file a petition of the main plaintiff.
If you have suffered a loss on your Affirm investments or would like to inquire about the possibility of pursuing claims to recover your loss under federal securities laws, you may submit your contact information to www.glancylaw.com/cases/affirm-holdings-inc/. You may also contact Charles H. Linehan, of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at [email protected] to find out more about your rights.
On December 16, 2021, the Consumer Financial Protection Bureau issued an order to Affirm, along with four other companies offering “buy now, pay later” credit, seeking information about the companies’ facilitation of debt excessive consumer spending, regulatory arbitrage and data collection. .
On this news, Affirm’s stock fell $11.74, or 10.6%, to close at $99.24 per share on Dec. 16, 2021, hurting investors.
Then, on February 10, 2022, Affirm announced in a Tweet details of the company’s financial performance in the second quarter of 2022, including that sales were up 77%, suggesting revenue would exceed expectations. This sent Affirm’s stock price up nearly 10% in intraday trading. Later in the day, the company deleted the Tweet and announced its full results, including a net loss of $159.7 million that missed analysts’ estimates of $100.3 million.
On this news, Affirm’s share price fell $26.89, or 32.2% from an intraday high of $83.57 per share $16.00, to close at 58.68. $ per share on February 10, 2022, further hurting investors.
The filed complaint alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors that: (1) Affirm’s buy now, pay later service facilitated excessive consumer indebtedness, regulatory arbitrage and data collection; (2) the foregoing has subjected Affirm to increased risk of regulatory review and enforcement action; (3) State that disclosure controls and procedures and internal control over financial reporting were inadequate; (4) the Company’s Tweet contained only selected measures of its second quarter 2022 financial results, leading investors to believe that the Company performed better than it actually did; (5) the Tweet omitted important details, including that Affirm’s quarterly loss was $0.57 per share, which was necessary for the statement made not to be misleading; and (6) as a result of the foregoing, the defendants’ public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired securities of Affirm during the Class Period, you may sue the Court no later than April 29, 2022 ask the Tribunal to appoint you as the principal plaintiff. To be a member of the Group, you do not have to perform any action at the moment; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the Class. If you would like to know more about this action, or if you have any questions about this announcement or your rights or interests in respect of these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected], or visit our website at www.glancylaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.
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