LivePerson, Inc.
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.
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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
The lawsuit against LivePerson revolves around several key disclosures and financial reports that significantly impacted the company’s stock price. The sequence of events is as follows:
- February 28, 2023 – Notification of Late Filing: LivePerson filed a Form 12b-25, notifying of a delayed Annual Report (Form 10-K) for the year ended December 31, 2022. The delay was attributed to the need for additional review and testing of revenue recognition related to a discontinued program of WildHealth, a company acquired by LivePerson. This program’s Medicare reimbursement was suspended pending government review. This announcement led to a 14.31% drop in LivePerson’s share price, from $11.81 to $10.12 per share.
- March 6, 2023 – Disclosure on Form 8-K: LivePerson released a report indicating that the review of WildHealth’s revenue would likely impact the fourth quarter 2022 revenue, particularly due to the suspension of Medicare reimbursements since November 2022. This news caused the company’s shares to fall by approximately 6.8%, from $11.47 to $10.69 per share.
- March 15, 2023 – Q4 2022 Financial Results: The company announced its Q4 2022 financial results, revealing a 1% decrease in total revenue compared to the same period last year, amounting to $122.5 million. This was disclosed through a Form 8-K press release.
- March 16, 2023 – Filing of the 2022 Annual Report: LivePerson filed its 2022 Annual Report with the SEC, revealing a material weakness in internal controls over financial reporting. This disclosure indicated that the company’s disclosure controls and procedures were ineffective as of December 31, 2022. Following this report, LivePerson’s shares plummeted by approximately 57.73%, from $9.77 to $4.13 per share.
The lawsuit alleges that throughout the Class Period, LivePerson made false or misleading statements and failed to disclose material information. Specifically, the defendants did not reveal that the company’s disclosure controls and procedures contained a material weakness, that it maintained deficient internal controls over financial reporting, that its Q3 2022 financial statements did not disclose the suspension of Medicare reimbursements for WildHealth, and consequently, that LivePerson had overstated its future financial position and prospects.
