Shopify Inc. Securities Investigation
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of Shopify Inc. (NYSE:SHOP) regarding possible violations of federal securities laws or other unlawful business practices. Investors who purchased shares of Shopify prior to October 4, 2017 may be affected.
Shopify’s User Growth Questioned & Shopify Stock Drop
On October 4, 2017, Citron Research published a report questioning the sustainability of Shopify’s user growth and asserting that the company’s marketing practices violate Federal Trade Commission (FTC) rules.
The report specifically references marketing material and promotions distributed by Shopify that called it “the online store for someday millionaires” and claim that members can quit their jobs and become millionaires. The Citron report compared Shopify’s business practices to those of Herbalife, which recently paid $200 million to settle Federal Trade Commission charges and agreed to an order “prohibit[ing] Herbalife from misrepresenting distributors’ potential or likely earnings.”
Following this news, the share price of Shopify plummeted more than 11.5% to close at $103.30 on October 4, 2017.
Have You Purchased or Acquired Shopify Shares?
If you purchased or acquired Shopify common stock or other securities and would like to speak privately with a securities attorney to learn more about the investigation and your potential legal rights, please fill out the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.