New York, New York--(Newsfile Corp. - December 22, 2023) - The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Western District of Oklahoma on behalf of those who acquired Paycom Software Inc. ("Paycom" or the "Company") (NYSE: PAYC) securities during the period from February 9, 2022 through November 1, 2023 (the "Class Period"). Investors have until January 9, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On October 31, 2023, Paycom filed with the U.S. Securities and Exchange Commission a current report on Form 8-K announcing its financial results for the third quarter of 2023. On the same day, Paycom's Chief Executive Officer Chad Richison and Chief Financial Officer Craig E. Boelte participated in the Company's third quarter of 2023 earnings call during which the Company announced that its Beti product-a self-service payroll technology-was cannibalizing a portion of Paycom's services and revenues. The cannibalization of revenue led the Company to miss its expected revenues for the third quarter of 2023, reporting revenue of $406.3 million compared with its prior projection of $410-$412 million. Additionally, the cannibalization of services and revenues caused Paycom to lower its projected fiscal 2023 revenues from the previously projected range of $1.715-$1.717 billion to $1.679-$1.684 billion. On this news, the price of Paycom shares declined by $94.28 per share, or approximately 38.49%, from $244.97 per share to close at $150.69 on November 1, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Paycom's Beti product led to cannibalization of the Company's services and revenues; (ii) Paycom knew but failed to disclose that Beti was leading to cannibalization of the Company's services and revenues, and failed to warn of cannibalization as a general risk; (iii) as a result of cannibalization of revenue, Paycom missed its expected Q3 2023 revenue and would have to revise its expected 2023 revenues guidance; and (iv) the cannibalization issue resulted in projected 2024 year-over-year revenue growth to between 10% and 12%, well below expectations.
If you purchased or otherwise acquired Paycom securities, have information, or would like to learn more about this investigation, 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.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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