Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Oct. 16, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Shift4 Payments, Inc. (“Shift4” or the “Company”) (NYSE: FOUR) investors that a lawsuit filed on behalf of investors that purchased Shift4 securities between November 10, 2021 and April 18, 2023, both dates inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The Complaint states that Shift4, a company in the U.S. providing software and payment processing solutions, including integrated and mobile point-of-sale (POS) solutions, has been accused of making false and misleading statements during the Class Period. Key allegations include:
- Inadequate Controls and Reporting: The Plaintiff claims that Shift4 had deficient disclosure controls and procedures and internal control over financial reporting, which weren't properly disclosed to investors.
- Misaccounting of Customer Acquisition Costs: It is alleged that Shift4 failed to accurately account for customer acquisition costs, leading to an artificial inflation of its net cash provided by operating activities.
- Likely Restatements: Defendants are accused of not revealing that due to the mentioned issues, Shift4 would likely need to restate one or more of its previously issued financial statements.
- Accounting Maneuvers: The Complaint suggests that Shift4 employed accounting strategies, particularly in connection with its mass strategic buyout program and sponsor bank merchant settlement account. These tactics were allegedly designed to present an inaccurate portrayal of the company's performance, business quality, and earnings potential.
- Negative Impact on Reputation and Business: The Complaint asserts that the aforementioned issues, when exposed, would likely have a detrimental effect on Shift4's reputation and business.
On April 19, 2023, Blue Orca Capital published a report that made allegations against Shift4. The report claimed that Shift4 was essentially a consolidation of low-tech POS systems and payment processors, which were less profitable, generated lower cash, and had higher leverage than what investors were led to believe. The report also accused Shift4 of questionable accounting maneuvers in 2022, including distributor acquisitions that artificially affected its cost of goods sold and operating cash flow.
As a result of the news stemming from the Blue Orca Report, Shift4's stock price experienced a decline of $5.95 per share, equaling an 8.68% drop. The stock closed at $62.59 per share on April 19, 2023.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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