Affirm Holdings, Inc. (AFRM) Tweeted Misleading Financial Results
A shareholder filed a class action on behalf of investors who purchased or otherwise acquired Affirm Holdings, Inc. (NASDAQ: AFRM) on February 10, 2022, after the Company sent a Tweet concerning its second quarter 2022 financial results. Affirm purports to be a “next generation platform for digital and mobile-first commerce.”
According to the complaint, at approximately 1:15 p.m. on February 10, 2022, Affirm Tweeted certain metrics from its second quarter 2022 financial results. The Tweet was published prior to the Company’s planned release of its financial results, and 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.
Then, the Company deleted the Tweet and released its full second quarter financial results ahead of schedule, revealing a loss of $0.57 per share, compared with analyst expectations of $0.37 per share. On this news, Affirm’s share price plummeted from an intra-day high of $83.57 per share to close at $58.68 per share, representing a loss of approximately 32%.
Next Steps: If you acquired shares of Affirm Holdings, Inc. (AFRM) on February 10, 2022 after the Company’s Tweet, you have until April 29, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.