NEW YORK, Feb. 20, 2022 — Pomerantz LLP is investigating claims on behalf of investors of Affirm Holdings, Inc. Such investors are advised to contact Robert S. Willoughby.
The investigation concerns whether Affirm and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it had launched an inquiry into the payment service offered by Affirm known as “buy-now, pay-later” (“BNPL”). The CFPB issued an order to Affirm, along with four other companies offering BNPL, seeking information about Affirm’s facilitation of excessive consumer debt, regulatory arbitrage, and data harvesting.
The CFPB said it is concerned about “accumulating debt, regulatory arbitrage, and data harvesting,” and is seeking data on the risks and benefits of the products. In a statement addressing BNPL services, the CFPB Director stated, “[t]he consumer gets the product immediately but gets the debt immediately too.”
On this news, Affirm’s stock price fell $11.74 per share, or 10%, to close at $99.24 per share on December 16, 2021.
Then, on February 10, 2022, during market hours, Affirm’s stock price spiked after a later-deleted tweet from the Company’s official Twitter account posted some second quarter metrics. Then, still during market hours on the same day, Affirm tweeted a second tweet, attaching its quarterly results which included a third quarter revenue forecast that missed some analyst estimates and included a widened net loss.
On this news, Affirm’s stock price fell $12.13 per share, or 20.67%, to close at $46.55 per share on February 11, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions.
Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
Image Courtesy Pomerantz
This article was shared with Prittle Prattle News as a Press Release by PRNewswire
