LivePerson, Inc.
| Company Name | LivePerson, Inc. |
| Stock Symbol | LPSN |
| Class Period | May 10, 2022 to March 16, 2023 |
| Lead Plaintiff Motion Deadline | June 23, 2023 |
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 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) 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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