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Affirm Holdings, Inc.

Class Action
  • Active
Investigation
02/10/2022
Initial Lawsuit
02/28/2022
Lawsuit Progression
06/09/2022

Investigation

Was Affirm’s tweet on February 10, 2022, partially revealing its Q2 2022 financial results, subsequently described as a “human error“, in fact, misleading to shareholders and causing financial loss?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

  • Investigation Date
    02/10/2022
  • Hypothetical Affected Period
    February 10, 2022 to February 10, 2022
  • Hypothetical Transgression
    Securities Violation
Main Event

Actual Numbers

02/10/2022

Company Statement

Around 2:48 PM EST, Affirm publishes its actual Q2 financials (full version, as opposed to the tweet) showing operating loss of $196.2 million compared to $26.8 million in the second quarter of fiscal 2021, including an $82.0 million increase in stock-based compensation.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$58.68 $74.68 $-16 -21.42%
See more on Factual Timeline

Initial Lawsuit

This is a securities class action on behalf of all investors who purchased or otherwise acquired Affirm Holdings, Inc. securities on February 10, 2022 after the company sent a Tweet concerning its Second Quarter 2022 financial results at approximately 1:15 p.m. EST.

  • Filing Date
    02/28/2022
  • Class Period
    02/10/2022 to 02/10/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Block & Leviton, LLP
  • Case Title
    Toole v. Affirm Holdings, Inc. et al
  • Docket Number
    3:22-cv-01243
  • Court
    California Northern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Affirm’s Tweet contained only selected metrics from the company’s second quarter 2022 financial results, which caused investors to believe that the company had performed better than it actually did;
(ii) the Tweet omitted material details, including that Affirm’s quarterly loss was $0.57 per share, which was necessary in order to make the statement made not misleading.

Defendants

  • Company
    Affirm Holdings, Inc.
  • Chief Executive Officer
    Max Levchin

Lawsuit progression

  • Docket Number
    3:22-cv-01243
  • Court
    California Northern District Court

Lead Counsel

06/09/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Amended Complaint

07/06/2022

Lead plaintiff files this a federal securities class action lawsuit on behalf of a class consisting of all persons and entities, excluding Defendants, who purchased or otherwise acquired Affirm securities on or after approximately 1:15 p.m. Eastern on February 10, 2022, and who were damaged as of the market close that day and/or the following day.

  • Updated Class Period
    02/10/2022 to 02/10/2022
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

08/01/2022

A motion to dismiss was filed with the court.

Factual Timeline

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