SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that securities class action lawsuits have been commenced in the District of Nevada on behalf of purchasers of Paysign, Inc. (NASDAQ:PAYS) publicly traded securities between March 12, 2019 and March 31, 2020 (the “Class Period”). The first filed case is captioned Shi v. Paysign, Inc., No. 20-cv-00553, and is assigned to Judge Gloria M. Navarro. The Paysign securities class action lawsuits charge Paysign and its CEO and CFO with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Paysign publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Paysign securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Paysign securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Paysign securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Paysign securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Paysign securities class action lawsuit or have questions concerning your rights regarding the Paysign securities class action lawsuit, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Paysign securities class action lawsuit must be filed with the court no later than May 18, 2020.
Paysign provides prepaid card programs and processing services under the PaySign brand to corporations, government agencies, universities, and other organizations. The Company’s services include transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through Paysign’s proprietary card-processing platform.
The complaints allege that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that Paysign’s internal control over financial reporting and its information technology general controls were not effective. As a result of this information being withheld from the market, Paysign securities traded at artificially inflated prices during the Class Period, with the price of the Company’s stock reaching a high of more than $17 per share.
On March 16, 2020, before the market opened, Paysign filed a Form 12b-25 with the SEC disclosing that it was unable to timely file its annual report for the fiscal year ended December 31, 2019 because it needed additional time to complete its financial audit for the year. In addition, the Company reported that, “in the course of completing its assessment of internal controls over financial reporting for 2019 and the company’s initial year of compliance with Sarbanes-Oxley 404b, management identified material weaknesses related to (i) assessment of internal controls over financial reporting and (ii) information technology general controls.” On this news, the price of Paysign shares fell nearly 17% to close at $4.59 per share on March 16, 2020.
Then, after the markets closed on March 31, 2020, Paysign announced that it was again delaying the release of its 2019 financial results. On this news, the price of Paysign stock declined another 16% from its March 31, 2020 close of $5.17 per share to close at $4.35 per share on April 1, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.