RADNOR, Pa., April 9, 2022 /PRNewswire/ — The law firm Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) advises investors that a class action securities lawsuit has been filed against Affirm Holdings, Inc. (“Affirm”) ( NASDAQ: AFRM). The suit accuses Affirm of violating federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and outlook. As a result of Affirm’s materially misleading statements to the public, Affirm’s investors suffered significant losses.
Kessler Topaz is one of the world’s foremost advocates for protecting the public from corporate fraud and other wrongdoing. Our securities fraud litigants are consistently individually recognized as leaders in the field and our firm is both feared and respected within the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the categories of shareholders we represent.
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PRINCIPAL APPLICANT DEADLINE: APRIL 29, 2022
COURSE PERIOD: FEBRUARY 12, 2021 BY FEBRUARY 10, 2022
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
James Maro, Esq. at (484) 270-1453 or by email at [email protected]
AFFIRM THE ALLEGED MISCONDUCT OF
Affirm describes itself as a “next generation platform for digital and mobile-first commerce”. Through its platform, Affirm offers consumers “buy now, pay later” or “BPL” services. Affirm represents itself “a more flexible and transparent alternative to credit cards“.
On February 12, 2021, Affirm issued a post-trade press release announcing Affirm’s fiscal 2021 second quarter results. The press release quoted Max Levchin, Chairman of the Board and Chief Executive Officer of Affirm, who stated, in relevant part, that: “Affirm’s “mission has been to create honest financial products that improve lives”; “[w]We’ve aligned our success with the success of both sides of the commerce ecosystem, winning when our consumers . . . to 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 investigation into Affirm’s BNPL payment service, as well as four other companies offering BNPL. The CFPB said it was concerned about how BNPL drives debt accumulation, regulatory arbitrage and data collection, and seeks data on the risks and benefits of products. In a press release addressed to the services of the BNPL, the director of the CFPB declared: “[t]The 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 about 1:15 p.m. on February 10, 2022, Affirm posted a tweet from its official Twitter account, in which Affirm disclosed certain measures of its second quarter 2022 financial results. The Tweet, which was posted ahead of Affirm’s planned financial results release, described a quarter very successful, which included a 77% revenue increase. This sent Affirm’s stock price up nearly 10% in intraday trading. Affirm then deleted the Tweet and released its full second quarter financial results earlier than expected, which were lackluster, posting a loss of $0.57 per share, compared to analysts’ expectations of $0.37 per share. Following this news, Affirm’s share price fell from an intraday high of $83.57 per share on February 10, 2022to close at $58.68 per share, or approximately 32%.
WHAT CAN I DO?
Affirm that investors can, not later than April 29, 2022 seek to be named as the lead class representative plaintiff through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absentee class member. Kessler Topaz Meltzer & Check, LLP encourages Affirm investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE TO REGISTER FOR THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the proposed category of investors. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP is filing class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, Pennsylvania 19087
SOURCE Kessler Topaz Meltzer & Check, LLP