LIVEPERSON INVESTOR DEADLINE APPROACHING
- None.
- LivePerson's share price fell significantly on multiple occasions due to the news of control deficiencies and material weaknesses in the company's internal control over financial reporting. The share price fell by 57.73% on March 16, 2023, causing substantial damage to investors.
Insights
The recent developments around LivePerson, Inc. have led to significant fluctuations in the company's stock price, reflecting the market's response to the revelation of internal control deficiencies and the impact on financial reporting accuracy. The material weakness in financial controls, especially related to revenue recognition post-acquisition, is a critical concern for investors as it can affect the reliability of financial statements and potentially lead to restatements.
From an investment perspective, these events typically result in heightened scrutiny from regulators and can lead to a loss of investor confidence, both of which are likely to exert downward pressure on the stock price in the short-term. Over the long-term, the company's ability to remediate these issues and restore credibility will be crucial for recovery.
The initiation of a class action lawsuit for alleged securities fraud is a significant legal event that underscores the importance of disclosure and adherence to federal securities laws. The allegations suggest that LivePerson may have provided misleading information or failed to disclose material information, which is a serious offense under securities law. The outcome of such litigation could result in substantial financial penalties and impact the company's future operations.
Moreover, the role of the lead plaintiff is critical in class action suits as they represent the interests of the class and help steer the litigation process. Investors who have incurred substantial losses often have a greater incentive to pursue litigation vigorously, potentially leading to larger settlements or judgments.
The disclosure of a material weakness in internal controls over financial reporting is particularly troubling in the tech industry, where investor confidence is often tied to perceived growth and financial stability. For a company like LivePerson, which operates in the competitive sector of conversational AI, such news can be detrimental to its market standing and competitive edge. It is essential for the company to address these issues promptly to maintain its industry position and investor trust.
Furthermore, the suspension of Medicare reimbursements for a subsidiary's program can signal operational challenges that extend beyond financial reporting, potentially indicating broader systemic issues within the acquired entity that could impact future revenue streams and growth projections.
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding
If you suffered losses exceeding
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in
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
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 emonstration 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
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
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.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
View original content to download multimedia:https://www.prnewswire.com/news-releases/liveperson-investor-deadline-approaching-302020560.html
SOURCE Faruqi & Faruqi, LLP
FAQ
What is the investigation about LivePerson, Inc. (LPSN)?
What is the deadline for the investigation of LivePerson, Inc. (LPSN)?
Why did LivePerson's share price fall?
