LivePerson – 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 LivePerson, Inc. (“LivePerson” or “the Company”) (NASDAQ: LPSN) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired LivePerson securities from May 10, 2022 and March 16, 2023. (the “Class Period”). Investors who acquired National Instruments securities during this defined timeframe are strongly encouraged to participate in this case by contacting email@example.com. The deadline to file a motion for appointment of lead plaintiff is January 30, 2024.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased LivePersoon 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 LIVEPERSON
LivePerson delivers mobile and online messaging solutions through Conversational Artificial Intelligence. In February 2022, the Company acquired WildHealth, Inc. (“WildHealth”), a precision medicine service which purportedly “leverages advanced machine learning to combine DNA analysis, biometrics, microbiome testing and phenotypic data to provide people with a blueprint for truly optimized health and a maximized health span.” As part of its business model, WildHealth often receives reimbursements for providing services to certain Medicare programs. In November 2022, unbeknownst to investors, WildHealth received notice that reimbursements for its services rendered under a Medicare demonstration program related to COVID-19 testing (the “Program”) were suspended pending further review. Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s disclosure controls and procedures contained a material weakness; (ii) accordingly, LivePerson maintained deficient internal controls over its financial reporting; (iii) as a result, LivePerson’s Q3 2022 financial statements failed to disclose the suspension of WildHealth’s Medicare reimbursements in connection with the Program and the resulting negative impact on the Company’s future revenues; (iv) accordingly, LivePerson had overstated the Company’s future financial position and/or prospects; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. On February 28, 2023, before market hours, LivePerson issued a Notification of Late Filing on Form 12b-25 regarding its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 10-K”). Among other things, the notification revealed that, as a result of LivePerson’s acquisition of WildHealth, “the Company requires 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 share price fell $1.69 per share, or 14.31%, to close at $10.12 per share on February 28, 2023. Then on March 6, 2023, before market hours, the Company issued a current report on Form 8-K which disclosed that “the referenced review of WildHealth revenue is anticipated to affect fourth quarter 2022 revenue attributable to WildHealth’s participation in a Medicare demonstration program, due to suspension in November 2022 of Medicare reimbursements under the program and pending further governmental review.” On this news, LivePerson’s share price fell $0.78 per share, or 6.8%, to close at $10.69 per share on March 7, 2023. Then, on March 15, 2023, after market hours, the Company issued a press release announcing its Q4 2022 financial results on Form 8-K, which provided that “[t]otal revenue was $122.5 million for the fourth quarter of 2022, a decrease of 1% as compared to the same period last year” and “[w]ithin total revenue, business operations revenue for the fourth quarter of 2022 decreased 1% from the comparable prior-year period to $113.0 million, and revenue from consumer operations decreased 3% from the comparable prior-year period to $9.4 million.” Finally, on March 16, 2023, before market hours, the Company filed the 2022 10-K with the United States Securities and Exchange Commission. The 2022 10-K revealed that “due to certain control deficiencies which aggregated to a material weakness in the Company’s internal control over financial reporting as further described below, our disclosure controls and procedures were not effective as of December 31, 2022” and “[t]he control deficiencies, which in aggregate constitute a material weakness, were identified in connection with the Company’s previously disclosed review of certain transactions related to its subsidiary WildHealth.” On this news, LivePerson’s share price fell $5.64 per share, or 57.73%, to close at $4.13 per share on March 16, 2023, damaging investors.
- LivePerson, Inc. is a technology company specializing in conversational commerce solutions. Their platform enables businesses to engage with customers in real-time through various digital channels, including websites, mobile apps, messaging apps, and social media. LivePerson offers tools for implementing AI-driven chatbots and virtual assistants, emphasizing messaging as a primary mode of communication. The company focuses on enhancing customer engagement by providing personalized and timely interactions, supported by analytics and insights to optimize strategies. For the latest and most detailed information about LivePerson, including recent developments, it is advisable to refer to the company’s official website, press releases, and financial reports, as well as industry news.
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 LivePerson 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 30, 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.