Affirm Holdings, Inc.
| Company Name | Affirm Holdings, Inc. |
| Stock Symbol | AFRM |
| Class Period | February 12, 2021 to February 10, 2022 |
| Lead Plaintiff Motion Deadline | April 29, 2022 |
On December 16, 2021, the Consumer Financial Protection Bureau issued an order to Affirm, along with four other companies offering "buy now, pay later" credit, seeking information about the companies' facilitation of excessive consumer debt, regulatory arbitrage, and data harvesting.
On this news, Affirm’s stock fell $11.74, or 10.6%, to close at $99.24 per share on December 16, 2021, thereby injuring investors.
Then, on February 10, 2022, Affirm announced in a Tweet details of the Company’s second quarter 2022 financial performance, including that sales rose 77%, suggesting revenue would beat expectations. This caused Affirm’s share price to spike nearly 10% in intra-day trading. Later that day, the Company deleted the Tweet and announced its full results, including a net loss of $159.7 million that missed analyst estimates of $100.3 million.
On this news, Affirm’s stock price fell $26.89, or 32.2% from an intra-day high of $83.57 per share $16.00, to close at $58.68 per share on February 10, 2022, thereby injuring investors further.
The complaint filed 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) Affirm’s buy now, pay later service facilitated excessive consumer debt, regulatory arbitrage, and data harvesting; (2) the foregoing subjected Affirm to a heightened risk of regulatory scrutiny and enforcement action; (3) Affirm maintained inadequate disclosure controls and procedures and internal control over financial reporting; (4) the Company’s Tweet contained only selected metrics from its second quarter 2022 financial results, which caused investors to believe that the Company had performed better than it actually did; (5) the Tweet omitted material details, including that Affirm’s quarterly loss was $0.57 per share, which was necessary in order to make the statement made not misleading; and (6) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
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