SAN DIEGO & HENDERSON, Nev.–(BUSINESS WIRE)–$PAYS #ClassAction–Shareholder rights law firm Robbins LLP announces that a purchaser of PaySign, Inc. (NASDAQ: PAYS) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between March 12, 2019 and March 15, 2020. PaySign provides prepaid card programs and processing services to corporations, government agencies, universities, and other organizations.
If you suffered a loss as a result of PaySign’s misconduct, click here.
PaySign, Inc. (PAYS) Accused of Misleading Shareholders
According to the complaint, on March 12, 2019, PaySign attested to its accuracy over financial reporting in its Form 10-K for fiscal year 2018 and acknowledged the importance of its computer network systems in accurately and efficiently processing its transactions as well as the risks associated with these systems, but assured investors its internal controls were effective. These same statements were reiterated in its following quarterly reports for 1Q to 3Q 2019, each time affirming that there “were no changes in [its] internal controls over financial reporting that occurred during the quarter…that have materially affected, or are reasonably likely to materially affect, [its] internal control over financial reporting.” Contrary to PaySign’s assurances, on March 16, 2020, PaySign announced that it would be unable to timely file its annual report for fiscal year 2019, stating “the filing extension will provide the necessary time to complete [PaySign’s] financial audit” and revealing it had identified “material weaknesses related to its assessment of internal controls over financial reporting and information technology general controls.” On this news, shares of PaySign fell almost 17% to close at $4.59.
If you purchased PaySign, Inc. (PAYS) securities between March 12, 2019 and March 15, 2020, you have until May 18, 2020, to ask the court to be appointed lead plaintiff for the class.
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar outcome.