Archived Investigations
Shift4 Payments, Inc. (NYSE: FOUR)
Shift4 and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On April 19, 2023, Blue Orca Capital reported that “Shift4 [is], in reality, a roll-up of low-tech POS systems and payment processors which is substantially less profitable, generates far less cash, and is materially more levered than investors are led to believe,” and that in 2022, the Company “engaged in a string of highly questionable and hyper-aggressive accounting maneuvers seemingly designed to keep the stock afloat, from cash flow manipulation to inexplicable distributor acquisitions that enabled it to capitalize a major component of COGS [cost of goods sold].”
On this news, shares of Shift4 fell $5.95 per share, or 8.68%, to close at $62.59 per share on April 19, 2023.
The case is O’Meara v. Shift4 Payments, Inc., et al., No. 23-cv-03206.
A subsequent case was filed, Baer v. Shift4 Payments, Inc., et al., 23-cv-3969.