If you suffered losses exceeding $50,000 investing in LivePerson stock or options between May 10, 2022 and March 16, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/LPSN.
There is no cost or obligation to you.
NEW YORK, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against LivePerson, Inc. (“LivePerson” or the “Company”) (NASDAQ: LPSN) and reminds investors of the January 30, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company’s disclosure controls and procedures contained a material weakness; (2) accordingly, LivePerson maintained deficient internal controls over its financial reporting; (3) as a result, LivePerson’s Q3 2022 financial statements failed to disclose the suspension of WildHealth’s Medicare reimbursements in connection with the Program and the resulting negative impact on the Company’s future revenues; (4) accordingly, LivePerson had overstated the Company’s future financial position and/or prospects; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 28, 2023, before market hours, LivePerson issued a Notification of Late Filing on Form 12b-25 regarding its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 10-K”). Among other things, the notification revealed that, as a result of LivePerson’s acquisition of WildHealth, “the Company requires more time to perform additional review and testing of revenue recognition with respect to a recently discontinued WildHealth program, for which Medicare reimbursement is suspended pending further governmental review, and to complete its in-process review of internal controls and procedures.”
On this news, LivePerson’s share price fell $1.69 per share, or 14.31%, to close at $10.12 per share on February 28, 2023.
Then on March 6, 2023, before market hours, the Company issued a current report on Form 8-K which disclosed that “the referenced review of WildHealth revenue is anticipated to affect fourth quarter 2022 revenue attributable to WildHealth’s participation in a Medicare demonstration program, due to suspension in November 2022 of Medicare reimbursements under the program and pending further governmental review.”
On this news, LivePerson’s share price fell $0.78 per share, or 6.8%, to close at $10.69 per share on March 7, 2023.
Finally, on March 16, 2023, before market hours, the Company filed the 2022 10-K with the SEC. The 2022 10-K revealed that “due to certain control deficiencies which aggregated to a material weakness in the Company’s internal control over financial reporting as further described below, our disclosure controls and procedures were not effective as of December 31, 2022” and “[t]he control deficiencies, which in aggregate constitute a material weakness, were identified in connection with the Company’s previously disclosed review of certain transactions related to its subsidiary WildHealth.”
On this news, LivePerson’s share price fell $5.64 per share, or 57.73%, to close at $4.13 per share on March 16, 2023, damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding LivePerson’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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