The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of LivePerson, Inc. (LPSN) Investors

LOS ANGELES–(BUSINESS WIRE)–$STOCKSThe Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired LivePerson, Inc. (“LivePerson” or the “Company”) (NASDAQ: LPSN) securities between May 10, 2022 and March 16, 2023, inclusive (the “Class Period”). LivePerson investors have until January 30, 2024 to file a lead plaintiff motion.


If you are a shareholder who suffered a loss, click here to participate.

On February 28, 2023, before market hours, LivePerson disclosed that it would be unable to timely file its Annual Report due to the Company’s acquisition of its subsidiary, WildHealth, requiring “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, LivePerson’s stock price fell $1.69, or 14.3%, to close at $10.12 per share on February 28, 2023, thereby injuring investors.

Then, on March 6, 2023, the Company stated that the “review of WildHealth revenue [was] anticipated to affect fourth quarter 2022 revenue.” On this news, LivePerson’s stock price fell $0.78, or 6.8%, to close at $10.69 per share on March 7, 2023.

On March 15, 2023, LivePerson issued a press release announcing its fourth quarter 2022 financial results. Therein, the Company disclosed that “[t]otal revenue was $122.5 million for the fourth quarter of 2022, a decrease of 1% as compared to the same period last year” and “[w]ithin total revenue, business operations revenue for the fourth quarter of 2022 decreased 1% from the comparable prior-year period to $113.0 million, and revenue from consumer operations decreased 3% from the comparable prior-year period to $9.4 million.” The following day, the Company further disclosed that “due to certain control deficiencies which aggregated to a material weakness in the Company’s internal control over financial reporting as further described below, [its] disclosure controls and procedures were not effective as of December 31, 2022” and “[t]he control deficiencies, which in aggregate constitute a material weakness, were identified in connection with the Company’s previously disclosed review of certain transactions related to its subsidiary WildHealth.” On this news, LivePerson’s stock price fell $5.64, or 57.7%, to close at $4.13 per share on March 16, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s disclosure controls and procedures contained a material weakness; (2) accordingly, LivePerson maintained deficient internal controls over its financial reporting; (3) 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; (4) accordingly, LivePerson had overstated the Company’s future financial position and/or prospects; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased LivePerson securities during the Class Period, you may move the Court no later than January 30, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased LivePerson securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

[email protected]
www.frankcruzlaw.com