LOS ANGELES, May 26, 2023 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against LivePerson, Inc. ("LivePerson" or the "Company") (NASDAQ: LPSN).
Class Period: May 10, 2022 – March 16, 2023
Lead Plaintiff Deadline:June 23, 2023
If you wish to serve as lead plaintiff of the LivePerson lawsuit, you can submit your contact information at www.glancylaw.com/cases/LivePerson-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
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 $0.19, or 1.8%, to close at $10.00 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 WildHealth received a notice that Medicare was suspending reimbursements for services rendered under the Medicare demonstration program pending further review. As a result, LivePerson elected to take a reserve for revenue associated with such services in the fourth quarter of 2022 for which payment has not yet been collected. The Company further disclosed that, had the Company recognized revenues associated with services delivered under the program during the fourth quarter of fiscal 2022, its revenue would have been within the previous guidance ranges for the fourth quarter and full year.
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 alleges that, throughout the Class Period, Defendants failed to disclose to investors that: (1) LivePerson failed to address any material weaknesses with internal controls; (2) LivePerson's third quarter financial statements, ended in September 30, 2022 failed to disclose WildHealth's suspension of Medicare reimbursement; (3) as a result, LivePerson's fourth quarter 2022 revenue would be affected; and (4) 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.
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To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.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.
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SOURCE Glancy Prongay & Murray LLP
