LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Shift4 Payments, Inc. (“Shift4” or the “Company”) (NYSE: FOUR) securities between November 10, 2021 and April 18, 2023, inclusive (the “Class Period”). Shift4 investors have until October 19, 2023 to file a lead plaintiff motion.
If you suffered a loss on your Shift4 investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Shift4-Payments-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On October 21, 2022, Shift4 disclosed that its third quarter 2021, full year 2021, and first and second quarter 2022 financial statements should no longer be relied upon and would need to be restated due to a material weakness in the Company’s financial controls, which had caused it to incorrectly treat “customer acquisition costs” as cash used in investing activities rather than cash used in operating activities. As a result, Shift4 revised its net cash provided by operating activities to $3 million (down from its originally reported $29.2 million), $30.8 million (down from its originally reported $37.1 million), and $70.8 million (down from its originally reported $85 million) for the year ended December 31, 2021, the three months ended March 31, 2022, and the six months ended June 30, 2022, respectively.
On this news, Shift4’s stock price fell $1.21, or 2.7%, to close at $44.16 per share on October 24, 2022, thereby injuring investors.
Then, on April 19, 2023, Blue Orca Capital published a report alleging that Shift4 “engaged in a string of highly questionable and hyperaggressive accounting maneuvers seemingly designed to keep the stock afloat” including “cash flow manipulation” and “inexplicable distributor acquisitions that enabled it to capitalize a major component of COGS.” Blue Orca Capital also alleges that Shift4 engaged in unreported related-party transactions and that the Company’s questionable accounting maneuvers “inflated 2022 gross profit by 13%, Adj. EBITDA by 34%, and operating income by close to 3x.”
On this news, Shift4’s stock price fell $5.95, or 8.7%, to close at $62.59 per share on April 19, 2023, thereby injuring investors further.
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If you purchased or otherwise acquired Shift4 securities during the Class Period, you may move the Court no later than October 19, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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