Paysign Stock – Paysign, Inc. Class Action Lawsuit – NasdaqGS: PAYS
Class Action Lawsuit – PAYS Subject of Securities Class Action Lawsuit – Investors Who Purchased, Or Otherwise Acquired, PAYS Shares Between March 12, 2019 and March 15, 2020, Both Dates Inclusive, Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making PAYS investors aware that on March 19, 2020, a class action lawsuit was filed in United States District Court, District of Nevada, on behalf of persons or entities who purchased, or otherwise acquired, publicly-traded Paysign (“Paysign” or the “Company”) (NasdaqGS: PAYS) securities between March 12, 2019 and March 15, 2020, both dates inclusive, (the “Class Period”). The class action lawsuit seeks to recover compensable damages caused by the Paysign Defendants’ alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
According to the lawsuit, throughout the Class Period, Paysign Defendants made false and/or misleading statements and/or failed to disclose that: (1) Paysign’s internal control over financial reporting was not effective; (2) Paysign’s information technology general controls were not effective; and (3) as a result, Paysign defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Paysign Announces Inability to File Annual Report For Year Ended December 31, 2019
According to the class action complaint:
On March 16, 2020, before the market opened, Paysign filed a Form 12b-25, disclosing it was unable to timely file its annual report for the fiscal year ended December 31, 2019 due to the requiring addition time to complete the Company’s financial audit. The Company also [disclosed the] identification of material weaknesses in its internal controls relating to its internal control over financial reporting and its information technology general controls. [Paysign’s] accompanying press release stated, in relevant part:
Paysign, Inc. . . . , a vertically integrated provider of innovative prepaid card programs, digital banking and processing services for corporate, consumer and government applications, announced today that it will be delayed in the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Paysign is filing a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission, which will provide Paysign with a 15 calendar-day extension beyond the March 16, 2020 deadline within which to file the annual report on Form 10-K. The filing extension will provide the necessary time to complete the financial audit.
For the full year 2019, total revenues are expected to be $34.7 million, an increase of 48% when compared to 2018. Net income attributable to Paysign on a GAAP basis is expected to be $7.5 million, an increase of 188% when compared to 2018, and Adjusted EBITDA is expected to be $10.1 Million, an increase of 106% when compared to 2018.
These are preliminary results and estimates based on current expectations and are subject to completion of the financial audit. Actual results may differ materially. Paysign expects to finalize its financial results and file its Annual Report on Form 10-K no later than the prescribed due date allowed pursuant to Rule 12b-25.
Separately, in the course of completing its assessment of internal controls over financial reporting for 2019 and the company’s initial year of compliance with Sarbanes-Oxley 404b, management identified material weaknesses related to (i) assessment of internal controls over financial reporting and (ii) information technology general controls.
[Emphasis in original.]
On this news, according to the class action complaint, Paysign’s shares fell $0.93 per share, or approximately 17%, to close at $4.59 on March 16, 2020.
Have You Purchased, Or Otherwise Acquired, Paysign Stock During The Class Period?
PAYS investors who purchased, or otherwise acquired, stock shares of Paysign during the Class Period are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Kehoe Law Firm, P.C.
