The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern 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, inclusive. Investors have until January 30, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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. Among other things, the notification revealed that, as a result of LivePerson’s acquisition of WildHealth, “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, the Company issued a current report on Form 8-K which disclosed 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 review.” On this news, the price of LivePerson shares declined by $0.78 per share, or approximately 6.8%, from $11.47 per share to close at $10.69 on March 7, 2023.
On March 15, 2023, LivePerson issued a press release announcing its Q4 2022 financial results on Form 8-K, which disclosed that total revenue was $122.5 million for the fourth quarter of 2022, a decrease of 1% as compared to the same period last year.
Then, on March 16, 2023, the Company filed the 2022 Annual Report with the U.S. Securities and Exchange Commission. The report revealed that, upon its review of certain WildHealth-related transactions, the Company determined there was a material weakness in the LivePerson’s internal controls over financial reporting, and as such the Company’s disclosure controls and procedures were not effective as of December 31, 2022. 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: (i) the Company’s disclosure controls and procedures contained a material weakness; (ii) accordingly, LivePerson maintained deficient internal controls over its financial reporting; (iii) as a result, LivePerson’s Q3 2022 financial statements failed to disclose the suspension of WildHealth’s Medicare reimbursements in connection with the program and the resulting negative impact on the Company’s future revenues; and (iv) accordingly, LivePerson had overstated the Company’s future financial position and/or prospects.
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 investigations@kmllp.com, 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: https://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
