Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of LivePerson, Inc. (LPSN) Investors
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired LivePerson, Inc. ("LivePerson" or the "Company") (NASDAQ: LPSN) securities during the period from May 10, 2022 through March 16, 2023 (the "Class Period"). Investors have until June 23, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
LivePerson provides technology that facilitates real-time sales and customer service for companies doing business on the Internet.
On February 28, 2023, LivePerson issued a notification of late filing on Form 12b-25 regarding its Annual Report on Form 10-K for the year ended December 31, 2022. The late filing form stated that "the Company requires more time to perform additional review and testing of revenue recognition with respect to a recently discontinued WildHealth program, for which Medicare reimbursement is suspended pending further governmental review, and to complete its in-process review of internal controls and procedures." On this news, the price of LivePerson shares declined by $1.69 per share, or approximately 14.31%, from $11.81 per share to close at $10.12 on February 28, 2023.
On March 6, 2023, LivePerson issued a current report on Form 8-K stating the following in relevant part: "To provide additional clarity to investors, the Company notes that the referenced review of WildHealth revenue is anticipated to affect fourth quarter 2022 revenue attributable to WildHealth's participation in a Medicare demonstration program, due to suspension in November 2022 of Medicare reimbursements under the program and pending further governmental rview." On this news, the price of LivePerson shares declined by $0.78 per share, or approximately 6.80%, from $11.47 per share to close at $10.69 on March 7, 2023.
On March 16, 2023, LivePerson filed with the SEC its 2022 Annual Report on Form 10-K for the year ended December 31, 2022, which revealed material weaknesses regarding the Company's internal controls. The 2022 Annual Report stated, in relevant part, that "management concluded  as of December 31, 2022, our internal control over financial reporting was not effective." On this news, the price of LivePerson shares declined by $5.64 per share, or approximately 57.73%, from $9.77 per share to close at $4.13 on March 16, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) LivePerson failed to address any material weaknesses with internal controls; (2) LivePerson's third quarter financial statements for the year ended in September 30, 2022 failed to disclose WildHealth's suspension of Medicare reimbursement; and (3) as a result, LivePerson's fourth quarter 2022 revenue would be affected.
If you purchased or otherwise acquired LivePerson securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website: http://www.kmllp.com.
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