NEW YORK, April 06, 2022 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, advises investors that a securities class action lawsuit has been filed against Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM) and certain other defendants, alleging violations of federal securities laws. If you purchased shares of Affirm between February 12, 2021 and February 10, 2022, you are encouraged to contact Joe Pettigrew for additional information at (844) 818-6982, or at jpettigrew@scott-scott.com. The lead plaintiff deadline is April 29, 2022.
Affirm purports to be a “next generation platform for digital and mobile-first commerce.”
The complaint alleges that the Company and other defendants made materially false and misleading statements regarding Affirm’s business, operations, and compliance policies. Specifically, the Company did not disclose that: (i) Affirm’s buy-now, pay-later (“BNPL”) service facilitated excessive consumer debt, regulatory arbitrage, and data harvesting; (ii) the foregoing subjected Affirm to a heightened risk of regulatory scrutiny and enforcement action; (iii) Affirm maintained inadequate disclosure controls and procedures and internal control over financial reporting; (iv) Affirm’s tweet for its second quarter 2022 financial results (discussed below) contained selected metrics that made it appear that the Company had performed better than it actually did; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it had launched an inquiry into Affirm’s BNPL payment service. The CFPB indicated that it was concerned about how BNPL leads to “accumulating debt, regulatory arbitrage, and data harvesting,” and is seeking data on the risks and benefits of the products.
On this news, Affirm’s stock price fell $11.74 per share, or 10.58%, to close at $99.24 per share on December 16, 2021.
Then, on February 10, 2022, at approximately 1:15 p.m. EST, Affirm issued a tweet from its official account in which it disclosed certain metrics from its second quarter 2022 financial results. The tweet, which was published prior to Affirm’s planned release of its financial results, portrayed a highly successful quarter, including increased revenue of 77%.
The lawsuit alleges this tweet caused Affirm’s share price to spike nearly 10% in intra-day trading. The lawsuit also alleges that the tweet was materially misleading, in that it omitted to disclose the full details of Affirm’s second quarter financial results.
Affirm deleted the tweet and released its full second quarter financial results ahead of schedule. The full financial results were disappointing, with Affirm posting a loss of $0.57 per share, compared with analyst expectations of $0.37 per share.
On news of the deleted tweet and the subsequent release of the full earnings report, Affirm’s share price fell $24.89 per share, from an intra-day high of $83.57 per share on February 10, 2022, to close at $58.68 per share on February 10, 2022 – a decline of approximately 32%.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is April 29, 2022. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Affirm stock between February 12, 2021 and February 10, 2022, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or jpettigrew@scott-scott.com.
About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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CONTACT:
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
600 W. Broadway, Suite 3300, San Diego, CA 92101
(844) 818-6982
jpettigrew@scott-scott.com
