GreenSky Class Action

GreenSkyPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in GreenSky (NASDAQ:GSKY) in connection to alleged violations of securities laws by GSKY. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in GreenSky between May 21, 2018 and November 27, 2018.

The class action complaint specifically alleges that during the period in question, GSKY might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that offering documents issued in connection with its May 29, 2018 Initial Public Offering omitted a substantial shift in its merchant business mix which led to a decline in its transaction revenue. According to the complaint, these documents represented the company’s revenue model as a “strong” and “recurring” one, casting a positive light on the company’s growth and omitting the decline in its transaction-fee revenue. That IPO generated more than $1 billion in gross proceeds, per the company’s offering documents; a few months later, in August 2018, it reported poor financial results stemming from a change in its merchant business mix, from solar panel merchants to those in the elective healthcare space, whom it charged a lower transaction fee, according to the complaint. The company later posted additional results that fell short of expectations and subsequently reduced its financial guidance, after which its share price declined to $9.28/share on November 6, 2018, approaching 60% less than its IPO price of $23/share. The complaint alleges that when true facts emerged, investors who made purchases traceable to the IPO suffered losses.

According to the company‚Äôs website, GreenSky is a Georgia-based financial technology company that offers a proprietary platform which “large and growing opportunity in mobile, online and in-store point of sale finance, driving significant value for our constituents: merchants, banks and consumers.” Per its description, its platform boasts 14,000 active merchants, 2.1 million cumulative customers, $15 billion cumulative transaction volume, 33% growth in transaction volume, and 52% adjusted EBITDA margin. It trades on the Nasdaq exchange under the symbol GSKY.

A class action lawsuit has already been filed in connection with GreenSky. If you wish to serve as lead plaintiff in the GSKY lawsuit, you must move the Court no later than January 28, 2019. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.