The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Affirm Holdings, Inc. ("Affirm") (NASDAQ: AFRM). The action charges Affirm 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 Affirm's materially misleading statements to the public, Affirm's investors have suffered significant losses.
CLICK HERE TO SUBMIT YOUR AFFIRM LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/afrm-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=afrm
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LEAD PLAINTIFF DEADLINE: APRIL 29, 2022
CLASS PERIOD: FEBRUARY 12, 2021 THROUGH FEBRUARY 10, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. at (484) 270-1453 or via email at info@ktmc.com
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.
AFFIRM'S ALLEGED MISCONDUCT
Affirm describes itself as a "next generation platform for digital and mobile-first commerce." Through its platform, Affirm offers "buy now, pay later" or "BNPL" services to consumers. Affirm represents itself "a more flexible and transparent alternative to credit cards."
On February 12, 2021, Affirm issued a post-market press release announcing Affirm's fiscal year 2021 second quarter results. The press release quoted Max Levchin, Affirm's Chairman of the Board of Directors and Chief Executive Officer, who stated, in relevant part, that: Affirm's "mission has been to build honest financial products that improve lives"; "[w]e've aligned our success with the success of both sides of the commerce ecosystem, winning when our consumers . . . win"; and "we remain committed to empowering consumers to take control of their finances[.]"
Then, on December 16, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it had launched an inquiry into Affirm's BNPL payment service, along with four other companies offering BNPL. The CFPB indicated that it was concerned about how BNPL leads to accumulating debt, regulatory arbitrage, and data harvesting, and is seeking data on the risks and benefits of the products. In a statement addressing BNPL services, the CFPB Director stated, "[t]he consumer gets the product immediately but gets the debt immediately too." Following 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, at approximately 1:15 p.m. on February 10, 2022, Affirm issued a tweet from its official Twitter account, wherein Affirm disclosed certain metrics from its second quarter 2022 financial results. The Tweet, which was published prior to Affirm's planned release of its financial results, portrayed a highly successful quarter, which included an increase in revenue of 77%. This caused Affirm's share price to spike nearly 10% in intra-day trading. Affirm later deleted the Tweet and released its full second quarter financial results ahead of schedule, which were lackluster, posting a loss of $0.57 per share, compared with analyst expectations of $0.37 per share. Following this news, Affirm's share price plummeted from an intra-day high of $83.57 per share on February 10, 2022, to close at $58.68 per share, or approximately 32%.
WHAT CAN I DO?
Affirm investors may, no later than April 29, 2022 seek to be appointed as a lead plaintiff representative of 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 Affirm investors who have suffered significant losses to contact the firm directly to acquire more information.
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.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
info@ktmc.com
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Published by: Newsfile Corp .