LivePerson, Inc. (LPSN) Misled Investors Regarding its Internal Control Over Financial Reporting
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired LivePerson, Inc. (NASDAQ: LPSN) securities between May 10, 2022 and March 16, 2023. LivePerson, Inc. delivers mobile and online messaging solutions through Conversational Artificial Intelligence.
According to the complaint, during the class period, defendants failed to disclose that: (1) LivePerson failed to address any material weaknesses with internal controls; (2) LivePerson’s third quarter financial statements, ended in September 30, 2022, failed to disclose its subsidiary WildHealth’s suspension of Medicare reimbursement; and (3) as a result, LivePerson’s fourth quarter 2022 revenue would be affected.
On February 28, 2023, 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. On this news, LivePerson’s share price fell 14.31%, to close at $10.12 per share on February 28, 2023.
On March 15, 2023, after market hours, LivePerson announced its fourth quarter financial results. The next day, the Company filed with the SEC its 2022 Annual Report on Form 10-K for the year ended December 31, 2022, which revealed material weaknesses regarding the Company’s internal controls in connection with its acquisition of WildHealth. On this news, the Company’s share price fell $5.64 per share, or 57.73%, to close at $4.13 per share on March 16, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against LivePerson. Shareholders who want to act as lead plaintiff for the class must file their papers by June 23, 2023. 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.