Fidelity National Information Services, Inc. (FIS) Misled Investors Regarding the Integration of Worldpay, Inc.
A shareholder filed a class action on behalf of all persons or entities who purchased Fidelity national Information Services, Inc. (NYSE: FIS) common stock between February 9, 2021 and February 10, 2023, for violations of the Securities Exchange Act of 1934. Fidelity National provides global e-commerce and payment technologies to financial institutions and businesses and, in recent years, has become the largest processing and payments company in the world.
According to the complaint, on July 31, 2019, Fidelity National announced it had closed the acquisition of payments company Worldpay, Inc. (“Worldpay”) for $43 billion, consisting of $35 billion in cash and the assumption of $8 billion in debt. During the class period, defendants made false and/or misleading statements about Fidelity National’s latest acquisition of Worldpay by assuring investors it had “successfully completed the Worldpay integration” and touting the benefits of the Worldpay integration for the Company.
Investors slowly learned that the Company’s important Merchant Solutions segment was underperforming and that the Company’s integration of Worldpay was not “successfully completed.” After a series of disclosures that began on August 4, 2022 – including that Fidelity National would spin off Worldpay, and in the process, recognize a stunning $17.6 billion write-down on the asset – Fidelity National’s stock fell from a high of $104.13 per share on August 3, 2022, to close at $66.00 per share on February 13, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Fidelity National. Shareholders who want to act as lead plaintiff for the class must file their papers by May 5, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the derivative litigation. With shareholder rights, you do not have to participate in the case to be eligible for a recovery.
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