SAN DIEGO, Dec. 20, 2024 (GLOBE NEWSWIRE) -- DiCello Levitt LLP announces that it is investigating whether Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) complied with federal securities laws. The Firm’s investigation focuses on whether the Company violated the federal securities laws and issued false and/or misleading statements and/or failed to disclose information required to be disclosed to investors.

Investors who purchased Sezzle securities and those with information about the allegations are encouraged to obtain additional information and assist the Firm’s investigation by contacting DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or at investors@dicellolevitt.com.

No Case Has Been Filed and No Class Has Been Certified. Until a case is filed and a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.

Investigation Details:

Sezzle is a technology-enabled payments company that offers flexible financing option to consumers and merchants through a ‘Buy Now, Pay Later’ service. Approximately 52% of Sezzle’s revenue for the third quarter of fiscal year 2024 came from “transaction income,” which includes, among other things, merchant processing fees and consumer fees. In the same period, Sezzle derived 33% of its revenue from its two “subscription” offerings.

On December 18, 2024, Hindenburg Research published a critical research report titled “Sezzle: A Failing ‘Buy Now, Pay Later’ Platform Playing Short Term Tricks As Insiders Cash Out Via Stock Sales And Margin Loans,” alleging, among other things, that it found “Sezzle is borrowing expensive capital to make extremely risky loans through a struggling platform that is rapidly losing customers and merchants” and, at the same time, “insiders are selling stock or cashing out through a massive margin loan.” According to the report, Hindenburg Research claims that “Sezzle borrows at a 12.65% interest rate to lend to extremely high-risk consumers” with bad credit despite its merchant and customer base declining by 51% and 20% since 2021. The report further states that Sezzle is actively “boosting its near-term subscription numbers” by “enrolling users into recurring monthly subscriptions without their awareness.” After extensive research, Hindenburg Research has concluded that Sezzle’s optimistic revenue numbers are obtained using short-term strategies to give the Company’s insiders an opportunity to cash out over $71 million in stock.

In response to the Hindenburg Research report, shares of Sezzle plunged to trade as low as $225 per share on December 18, 2024, falling more than 28% (or more than $90) from its close on December 17, 2024.

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