OAKLAND, Calif.--(BUSINESS WIRE)--Shares of Lightspeed Commerce Inc. dropped 12% on September 29, 2021, after a Spruce Point Capital Management report claimed Lightspeed “massively” overstated its customer count and aggressively promoted other misleading metrics to hide poor revenue growth. Lightspeed then dropped as much as 30% in intraday trading on November 4, 2021 after its quarterly report offered weak guidance, including an implied forecast of zero sequential growth for its fourth quarter for the year. Gibbs Law Group is investigating a potential Lightspeed Securities Class Action Lawsuit on behalf of investors who lost money in Lightspeed (NASDAQ: LSPD).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Wednesday, September 29, 2021, short firm Spruce Point Capital Management released a report denouncing commerce platform company Lightspeed for allegedly misleading investors by inflating its growth prospects. For example, the report claims Lightspeed “overstat[ed] its customer count by 85%” before it IPO’d in September 2020. The report also claims that in its prospectus at its IPO, Lightspeed claimed a Total Addressable Market of $113 billion that would grow to $542 billion, but a more recent prospectus in 2021 gave a TAM of only $16 billion, an 85% drop. Spruce Point claims most price targets of Lightspeed are in actuality “inflated” by the company’s many recent acquisitions, which one former employee reportedly identified as “plagued by growth issues.”
Then, when Lightspeed released its 2022 Q2 report on November 4, 2021, the company issued guidance of approximately $520 million to $535 million for its full fiscal year. According to Motley Fool, when taken in conjunction with its forecast of $140 million to $145 million in Q3 of 2022, this seems to imply “no” sequential growth in Q4. This may indicate to investors, according to Motley Fool, that Lightspeed’s revenue growth has been “primarily” driven by acquisitions.
Upon this quarterly report, Lightspeed’s stock price plunged by as much as 30% in intraday trading on November 4, 2021, causing significant harm to investors.
What Should Lightspeed Investors Do?
If you invested in Lightspeed, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Lightspeed has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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