Expensify, Inc.
Exchange: NASDAQ
Ticker: EXFY
Date of Filing:
Court: District of Oregon
Filing Deadline

01/29/2024

TWERSKY LAW GROUP Notifies Expensify, Inc. (EXFY) Investors of Class Action

Expensify  – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Expensify, Inc. (“Expensify” or “the Company”) (NASDAQ: EXFY) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired ChargePoint Holdings securities from November 8, 2021 through November 29, 2023 (the “Class Period”). Investors who acquired Expensify securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is January 29, 2024.

The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Expensify securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.

 

ALLEGATIONS AGAINST EXPENSIFY

Expensify provides a cloud-based expense management software platform to individuals, small businesses, and corporations in the U.S. and internationally. The Company’s platform purportedly enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel, and Expensify offers track and submit plans for individuals. On October 15, 2021, Expensify filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on November 9, 2021 (the “Registration Statement”). On or about November 11, 2021, pursuant to the Offering Documents, Expensify conducted its IPO, selling 9.73 million shares priced at $27.00 per share. On November 12, 2021, Expensify filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, together with the Registration Statement, the “Offering Documents”). The Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing their preparation. Specifically, the Offering Documents made false and/or misleading statements and/or failed to disclose that: (i) Expensify’s revenue growth was highly susceptible to structural and macroeconomic headwinds; (ii) as a result, the Company overstated the efficacy of its business model and the likelihood it would meet the long-term growth projections touted in the Offering Documents; (iii) accordingly, the Company’s post-IPO financial position and/or business prospects were overstated; and (iv) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. On June 12, 2023, Morgan Stanley downgraded Expensify to Underweight from Equal-weight, citing structural headwinds and the Company’s risk-reward profile. On this news, Expensify’s stock price fell $0.45 per share, or 6.28%, to close at $6.72 per share on June 12, 2023. Then, on August 8, 2023, Expensify issued a press release announcing its second quarter 2023 financial and operating results. Among other items, Expensify reported GAAP EPS of -$0.14, missing consensus estimate of -$0.07, and revenue of $38.9 million, which likewise missed the consensus estimate of $41.5 million. Expensify also withdrew its previously issued revenue growth guidance. Following Expensify’s disclosures, JMP Securities downgraded the Company to Market Perform from Market Outperform. On this news, Expensify’s stock price fell $1.69 per share, or 28.55%, to close at $4.23 per share on August 9, 2023. Finally, after the market closed on November 7, 2023, Expensify issued a press release announcing third quarter 2023 financial and operating results that once again missed consensus estimates amid macroeconomic headwinds. Among other items, Expensify reported a Q3 GAAP loss of $0.21 per share and a 14.1% year-over-year revenue decline. On this news, Expensify’s stock price fell $1.07 per share, or 36.89%, to close at $1.83 per share on November 8, 2023. As of the time this Complaint was filed, Expensify’s securities continue to trade below the $27 per share Offering price, damaging investors. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of Expensify’s securities, Plaintiff and other Class members have suffered significant losses and damages.

 

ABOUT EXPENSIFY

  • Expensify Inc. is a software company that provides expense management services. It was founded in 2008 by David Barrett and is headquartered in San Francisco, California. Expensify’s main product is a cloud-based expense management solution that helps businesses and individuals automate the process of tracking and reporting expenses.
  • Key features of Expensify include the ability to scan and upload receipts, track time and mileage, create and submit expense reports, and integrate with various accounting and financial software. The platform aims to simplify the expense reporting process, saving time and reducing the likelihood of errors associated with manual expense tracking.

 

JOIN THIS CASE

It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Expensify during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is January 29, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.

Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.

Investors who believe they may qualify as potential class members in the class action lawsuit against Expensify are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.

 

DOCUMENTS


COMPLAINT

PLEASE READ THE COMPLAINT  DOCUMENT BEFORE SIGNING UP FOR THIS CASE.

JOIN THIS CASE