Bronstein, Gewirtz & Grossman, a corporate litigation boutique, has encouraged shareholders to contact the firm following the filing of a class action lawsuit against Paysafe Limited. The case alleges that the payments company was in violation of the federal securities law under the Securities Exchange Act of 1934, in turn the firm is seeking to recover damages for its defendants.
“If you suffered a loss in Paysafe you have until February 8, 2022, to request that the court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff,” said the firm’s statement.
Specifically, Bronstein, Gewirtz & Grossman alleges that throughout the given period, those accused made false statements, failing to reveal that Paysafe was being negatively impacted by gaming regulations in European markets. Moreover, the case claims that Paysafe did not notify shareholders that it was experiencing performance challenges in its Digital Wallet segment.
Finally, the case alleges that: “New eCommerce customer agreements were being pushed back; and as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.”
These claims, which are yet to be proven by the court, are taken from a statement released by the law firm this week.
Earlier this month, Bragar Eagel & Squire, also filed a class action lawsuit against Paysafe Limited. Bragar alleged similar claims against Paysafe. Moreover, this firm stated that the company’s share price fell $3.03 per share, or more than 40%, to close at $4.24 per share on November 11, 2021.