LivePerson, Inc. (NASDQ: LPSN) Securities Fraud Class Action

LivePerson investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than January 30, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired LivePerson, Inc. (“LivePerson”) (NASDAQ: LPSN) securities between May 10, 2022 and March 16, 2023, both dates inclusive (the “Class Period”). 

Case Background:
LivePerson delivers mobile and online messaging solutions through Conversational Artificial Intelligence.  In February 2022, LivePerson acquired WildHealth, Inc. (“WildHealth”), a precision medicine service that often receives reimbursements for providing services to certain Medicare programs.

On February 28, 2023, before the market opened, LivePerson revealed that it would be unable to timely file its annual report on Form 10-K for the year ended December 31, 2022 because the company required 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.”  Following this news, the price of LivePerson common stock declined $1.69 per share, or 14.3%, from a close of $11.81 per share on February 27, 2023, to close at $10.12 per share on February 28, 2023.

Then on March 6, 2023, before the market opened, LivePerson disclosed that the “review of WildHealth’s revenue is anticipated to affect fourth quarter 2022 revenue attributable to WildHealth’s participation in a Medicare demonstration program, due to the suspension in November 2022 of Medicare reimbursements under the program and pending further governmental review.”  Following this news, the price of LivePerson common stock declined $0.03 per share, or 0.26%, from a close of $11.50 per share on March 3, 2023, to close at $11.47 per share on March 6, 2023.

Finally, on March 15, 2023, after the market closed, LivePerson announced its fourth quarter 2022 financial results and revealed that total revenue was $122.5 million, a year-over-year decrease of 1%, business operations within total revenue was $113.0 million, a year-over-year decrease of 1%, and consumer operations was $9.4 million, a year-over-year decrease of 3%.  Thereafter, before the market opened on March 16, 2023, LivePerson revealed that, due to “certain control deficiencies” related to LivePerson’s previously disclosed review of certain transactions related to its subsidiary WildHealth, LivePerson had a “material weakness” in its “internal control over financial reporting” and its “disclosure controls and procedures were not effective as of December 31, 2022”.  Following this news, the price of LivePerson common stock declined $5.64 per share, or more than 57.7%, from a close of $9.77 per share on March 15, 2023, to close at $4.13 per share on March 16, 2023.

The complaint alleges that, during the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.  Specifically, Defendants misrepresented and/or failed to disclose that: (1) LivePerson's disclosure controls and procedures contained a material weakness; (2) LivePerson maintained deficient internal control over its financial reporting; (3) LivePerson's third quarter 2022 financial statements failed to disclose the suspension of WildHealth's Medicare reimbursements in connection with its Medicare demonstration program related to COVID-19 testing and the resulting negative impact on LivePerson's future revenues; (4) accordingly, LivePerson overstated the company's future financial position and/or prospects; and (5) 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.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.