PHILADELPHIA, March 23, 2020 /PRNewswire/ -- Kehoe Law Firm,
P.C. is making investors aware that on March 19, 2020, a class action
lawsuit was filed against Paysign, Inc. ("Paysign" or
the "Company") (NasdaqGS: PAYS) and certain officers in
United States District Court,
District of Nevada, on behalf of
individuals and entities that purchased, or otherwise acquired,
Paysign, Inc. securities between March 12,
2019 and March 15, 2020, both
dates inclusive (the "Class Period").
The class action lawsuit seeks to recover compensable damages
caused by the Paysign Defendants' alleged violations of the federal
securities laws under the Securities Exchange Act of 1934.
According to the lawsuit, throughout the Class Period, Paysign
Defendants made false and/or misleading statements and/or failed to
disclose that: (1) Paysign's internal control over financial
reporting was not effective; (2) Paysign's information technology
general controls were not effective; and (3) as a result, Paysign
defendants' statements about its business, operations, and
prospects, were materially false and misleading and/or lacked a
reasonable basis at all relevant times.
Paysign Announces Inability to File Annual Report For Year
Ended December 31, 2019
According to the class action complaint:
On March
16, 2020, before the market opened, Paysign filed a Form
12b-25, disclosing it was unable to timely file its annual report
for the fiscal year ended December 31,
2019 due to the requiring addition time to complete the
Company's financial audit. The Company also [disclosed the]
identification of material weaknesses in its internal controls
relating to its internal control over financial reporting and its
information technology general controls. [Paysign's]
accompanying press release stated, in relevant part:
Paysign, Inc. . . . , a vertically
integrated provider of innovative prepaid card programs, digital
banking and processing services for corporate, consumer and
government applications, announced today that it will be
delayed in the filing of its Annual Report on Form 10-K for the
fiscal year ended December 31,
2019. Paysign is filing a Form 12b-25,
Notification of Late Filing, with the Securities and Exchange
Commission, which will provide Paysign with a 15 calendar-day
extension beyond the March 16, 2020
deadline within which to file the annual report on Form
10-K. The filing extension will provide the necessary
time to complete the financial audit.
For the full year 2019, total
revenues are expected to be $34.7
million, an increase of 48% when compared to 2018. Net
income attributable to Paysign on a GAAP basis is expected to be
$7.5 million, an increase of 188%
when compared to 2018, and Adjusted EBITDA is expected to be
$10.1 Million, an increase of 106%
when compared to 2018.
These are preliminary results and
estimates based on current expectations and are subject to
completion of the financial audit. Actual results may differ
materially. Paysign expects to finalize its financial results and
file its Annual Report on Form 10-K no later than the prescribed
due date allowed pursuant to Rule 12b-25.
Separately, in the course of
completing its assessment of internal controls over financial
reporting for 2019 and the company's initial year of compliance
with Sarbanes-Oxley 404b, management
identified material weaknesses related to (i) assessment of
internal controls over financial reporting and (ii) information
technology general controls. [Emphasis in original.]
On this news, according to the class action complaint,
Paysign's shares fell $0.93 per
share, or approximately 17%, to close at $4.59 on March 16,
2020.
Have You Purchased, Or Otherwise Acquired, Paysign, Inc.
Stock Between March 12, 2019 and March
15, 2020, Both Dates Inclusive, and Suffered Losses Greater
Than $50,000?
PAYS investors who purchased, or otherwise acquired, shares
of Paysign, Inc. during the Class Period and suffered losses
greater than $50,000 are encouraged
to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext.
804, myarnoff@kehoelawfirm.com, info@kehoelawfirm.com, or
John Kehoe, Esq, (215) 792-6676,
Ext. 801, jkehoe@kehoelawfirm.com, to
discuss the PAYS securities investigation, the class action lawsuit
or potential legal claims.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary,
plaintiff–side law firm dedicated to protecting investors from
securities fraud, breaches of fiduciary duties, and corporate
misconduct. Combined, the partners at Kehoe Law Firm have
served as Lead Counsel or Co-Lead Counsel in cases that have
recovered more than $10 billion on
behalf of institutional and individual
investors.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/paysign-stock-alert--kehoe-law-firm-pc-investigating-securities-claims-on-behalf-of-paysign-inc-investors--pays-investors-who-have-suffered-losses-greater-than-50-000-are-encouraged-to-contact-kehoe-law-firm-pc-301028242.html
SOURCE Kehoe Law Firm, P.C.