Expensify
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
- Expensify initiated its IPO on or around November 11, 2021, offering 9.73 million shares at $27 each. Later, on June 12, 2023, Morgan Stanley downgraded Expensify from Equal-weight to Underweight due to structural challenges and a risky reward profile. Consequently, the stock price dropped by $0.45, or 6.3%, ending at $6.72 per share, resulting in investor losses.Subsequently, on August 8, 2023, Expensify announced its Q2 2023 financials, revealing a GAAP EPS of -$0.14, below the expected -$0.07, and revenues of $38.9 million, missing the $41.5 million forecast. The company also retracted its revenue growth forecast. Following this, the stock price plunged by $1.69, or 28.6%, closing at $4.23 per share on August 9, 2023, further harming investors.
Moreover, on November 7, 2023, Expensify disclosed its Q3 2023 financial results after market close, again falling short of expectations with a GAAP loss of $0.21 per share and a 14.1% decline in year-over-year revenue. This news caused a further drop in stock price by $1.07, or 36.9%, closing at $1.83 per share on November 8, 2023, exacerbating investor losses.
The lawsuit filed in this case claims that during the Class Period, the Defendants consistently made false and/or misleading statements and did not disclose crucial negative details about Expensify’s business, operations, and future prospects. Specifically, the Defendants didn’t inform investors that: (1) Expensify’s revenue growth was highly vulnerable to structural and economic challenges; (2) thus, the company overestimated the success of its business model and its capability to achieve long-term growth projections as promoted in the IPO documents; (3) as a result, the company’s financial situation and/or business prospects post-IPO were overstated; and (4) consequently, the Defendants’ optimistic statements about the company’s business, operations, and prospects were significantly misleading and/or lacked a reasonable basis at all times.
