Kehoe Law Firm, P.C. Announces a Securities Fraud Investigation On Behalf of Shareholders and Investors of USA Technologies, Inc. (NasdaqGM: USAT) (“USA Technologies”).
On September 11, 2018, USA Technologies disclosed that it will not file its Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (the “Annual Report”) by the September 13, 2018 deadline. In particular, the company revealed that
. . . [t]he Audit Committee of the Company’s Board of Directors, with the assistance of independent legal and forensic accounting advisors, is in the process of conducting an internal investigation of current and prior period matters relating to certain of [USA Technologies’] contractual arrangements, including the accounting treatment, financial reporting and internal controls related to such arrangements.The Audit Committee is working closely with its advisors to complete its investigation in as timely a manner as possible. [USA Technologies] will not be in a position to file its Form 10-K until the Audit Committee completes its investigation and [USA Technologies] and its independent auditor assess the results of that investigation.
Following this news, USA Technologies stock closed down more than 39% on September 11, 2018.
Class Action Lawsuit Filed on Behalf of USAT Investors
On September 11, 2018, a class action lawsuit was filed in United States District Court, District of New Jersey, on behalf a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased publicly-traded USA Technologies securities from November 9, 2017 through September 11, 2018, both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of federal securities laws and pursue remedies under the Securities Exchange Act of 1934.
According to the class action complaint, the USA Technologies’ Defendants made materially false and/or misleading statements and/or failed to disclose the adverse facts pertaining to [USAT’s] business and operations which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) USA Technologies’ treatment of contractual arrangements in its financial statements would result in an internal investigation and delay the filing of its annual report for fiscal year 2018; (2) consequently, USA Technologies’ internal controls over financial reporting were weak and deficient; (3) as a result, Defendants’ statements about USA Technologies’ business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
USA Technologies, Inc.
According to the Company:
USA Technologies, Inc. is a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market. The company also provides a broad line of cashless acceptance technologies including its NFC-ready ePort® G-series, ePort Mobile® for customers on the go, ePort® Interactive, and QuickConnect, an API Web service for developers. Through its recent acquisition of Cantaloupe Systems, Inc. (“Cantaloupe”), the company also offers logistics, dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management solutions. Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee services.