Lightspeed Commerce Inc.

  • Active

Investigation
11/16/2021

Initial Lawsuit
11/16/2021

Lawsuit Progression
02/22/2022

Investigation

  • Continous Holding
    September 11, 2020 to September 28, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding Lightspeed’s statements about its customer count, transaction volume and revenue per user, following a report by Spruce Point Capital Management.

Main Event

Short Report - "Cash Degenerative"

09/29/2021

Research Report (Short)

Spruce Point Capital Management publishes a short thesis report about Lightspeed alleging that “a cash degenerative North American roll-up of point-of-sale commerce solutions, has covered up massive inflation of its Total Addressable Market (TAM), customer counts, and Gross Transaction Volume (GTV).”

The report and its press release further describes that “[e]vidence shows that Lightspeed massively inflated its business pre-IPO, overstating its customer count by 85% and gross transaction volume (‘GTV’) by 10% – a payment volume metric that a former employee described as ‘smoke and mirrors’”; that there was “[e]vidence of declining organic growth and business deterioration through Lightspeed’s IPO, despite management’s claims that Average Revenue Per User (‘ARPU’) is increasing”; and that the company’s “[r]ecent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices.”

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
$98.77 $112.5 $-13.73 -12.2%
See more on Factual Timeline

Initial Lawsuit

This is a federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired Lightspeed securities between September 11, 2020 and September 28, 2021, both dates inclusive.

  • Filing Date
    11/16/2021
  • Class Period
    09/11/2020 to 09/28/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Pomerantz LLP
  • Case Title
    Nath v. Lightspeed Commerce Inc. et al
  • Docket Number
    1:21-cv-06365
  • Court
    New York Eastern 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) Lightspeed had misrepresented the strength of its business by, inter alia, overstating its customer count, gross transaction volume (GTV), and increase in Average Revenue Per User (ARPU), while concealing the company’s declining organic growth and business deterioration;
(ii) Lightspeed had overstated the benefits and value of the company’s various acquisitions;
(iii) accordingly, the company had overstated its financial position and prospects; and
(iv) as a result, the company’s public statements were materially false and misleading at all relevant times.

Defendants

  • Company
    Lightspeed Commerce Inc.
  • Chief Executive Officer
    Dax Dasilva
  • Chief Financial Officer
    Brandon Blair Nussey

Lawsuit progression

  • Docket Number
    1:21-cv-06365
  • Court
    New York Eastern District Court

Lead Counsel

02/22/2022

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

Amended Complaint

04/27/2022

Lead plaintiff files this federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired Lightspeed securities between September 11, 2020 and September 28, 2021, both dates inclusive.

  • Updated Class Period
    09/11/2020 to 09/28/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

06/27/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”LSPD” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

More

More Cases & Investigations
Privacy Policy
© Copyright 2025 Brios Services LLC
Terms & Conditions