Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Paycom Software, Inc. (“Paycom”) (NYSE: PAYC) securities between February 8, 2022 and October 31, 2023, inclusive (the “Class Period”).
Paycom is a software-as-a-service company that offers payroll and human capital management services to small and mid-sized employers. Paycom developed a new payroll processing software called “Better Employee Transaction Interface,” also known as “Beti,” which was designed to create the “perfect payroll” process for customers.
The complaint alleges that, throughout 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 and operations. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Paycom had been relying upon a significant, but undisclosed, amount of one-off payroll correction fees to fuel its past outsized revenue growth; (2) increased adoption of Beti by Paycom’s payroll customers was cannibalizing the fees the company had previously been charging to correct common payroll mistakes and to provide related services; (3) the increased Beti adoption was decreasing Paycom’s gross profit margins; and (4) as a result of the foregoing, Defendants’ statements about Paycom’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On September 6, 2024, Defendants filed a Motion to Dismiss the Amended Complaint. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; 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.