
Payoneer Global Inc. (PAYO)
Whether directors and officers of Payoneer Global Inc. (PAYO) breached their fiduciary duties to the company and its shareholders.
Investigation
12/10/2021
Initial Lawsuit
12/10/2021
Lawsuit Progression
05/10/2022
Did Paysafe mislead investors about European gambling regulations’ impact and performance challenges in some of its segments?
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.
11/11/2021
Paysafe reports its Q3 2021 financial results disclosing a 1% decrease in revenue, a net loss attributable to the company of $147.2 million, compared to net loss of $38.1 million, and inclusive of a non-cash impairment charge of $322.2 million. “Net loss included a non-cash impairment charge of $322.2 million to reduce the carrying value of intangible assets in the Digital Wallet segment.”
The company also reduced its guidance for the full year 2021, citing the impact of “gambling regulations and softness in key European markets and performance challenges impacting the Digital Wallet segment.”
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$4.24 | $7.27 | $-3.03 | -41.68% |
A Playsafe investor filed a securities class action lawsuit against Paysafe, on behalf of persons and entities that purchased or otherwise acquired Paysafe securities between December 7, 2020, and November 10, 2021, inclusive.
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:
(1) that Paysafe was being negatively impacted by gambling regulations in key European markets;
(2) that Paysafe was encountering performance challenges in its Digital Wallet segment;
(3) that new eCommerce customer agreements were being pushed back; and
(4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
05/10/2022
The court issued an order appointing the lead plaintiff and lead counsel.
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