Paysafe Limited (PSFE) Failed to Disclose the Truth About its Business Prospects
A class action was filed on behalf of all persons and entities that purchased or otherwise acquired Paysafe Limited (NYSE: PSFE) securities between December 7, 2020 and November 10, 2021, for violations of the Securities Exchange Act of 1934. Paysafe provides digital commerce solutions.
According to the complaint, on December 7, 2020, Foley Trasimene Acquisition Corp. (FTAC) announced it and Paysafe Group Holdings Limited entered into a definitive merger agreement and plan of merger and the newly combined company would operate as Paysafe. On March 30, 2021, Paysafe announced it had completed the merger.
Throughout the class period, Paysafe touted its financial results, progress on its strategic initiatives, and milestones in scaling its platform, including in iGaming and crypto. The Company, however, failed to disclose to investors that it was being negatively impacted by gambling restrictions in key European markets, encountering performance challenges in its Digital Wallet segment, and that new eCommerce customer agreements were being pushed back.
On November 11, 2021, Paysafe announced it was revising its guidance revenue for the full year 2021 downward from a range of $1,530-$1,550 to a range of $1,470-$1,480. Paysafe attributed the revision to “[g]ambling regulations and softness in key European markets and performance challenges impacting the Digital Wallet segment” and “[t]he modified scope and timing of new eCommerce customer agreements relative to the Company’s original expectations for these agreements.” On this news, the Company’s share price fell more than 40% to close at $4.24 per share on November 11, 2021.
If you acquired shares of Paysafe Limited (PSFE) securities between December 7, 2020 and November 10, 2021, you have until February 8, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.