RADNOR, Pa., Nov. 18, 2023 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Western District of Oklahoma against Paycom Software, Inc. (“Paycom”) (NYSE: PAYC). The action charges Paycom with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Paycom’s materially misleading statements and omissions to the public, Paycom’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: JANUARY 9, 2024
CLASS PERIOD: MAY 3, 2023 THROUGH NOVEMBER 1, 2023
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or via email at [email protected]
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
PAYCOM’S ALLEGED MISCONDUCT
The Class Period begins on May 3, 2023, following the company’s after-market earnings call which was held the day before. During the May 2, 2023 earnings call and throughout the Class Period, Paycom repeatedly made materially false and misleading statements which extolled Beti’s purported benefits – which Paycom touted as “the industry’s first self-service payroll technology” – while omitting that it was also cannibalizing the company’s services and revenues.
On October 31, 2023, Paycom shocked the market when it reported its Q3 2023 financial results. In its results, Paycom disclosed disappointing Q3 revenues, revenues guidance for Q4 2023, and an initial 2024 outlook for 10% to 12% revenue growth. Paycom’s reported financial results fell significantly below consensus estimates. On an earnings call held that same day discussing the results, Paycom’s CEO and CFO disclosed that the company’s Beti product was cannibalizing a portion of Paycom’s services and revenues, which led the company to miss its expected revenues for the Q3 2023. Likewise, the cannibalization of services and revenues caused Paycom to lower its projected fiscal 2023 revenues.
Following this news, the price of Paycom shares declined by $94.28, or approximately 38.49%, from $244.97 per share to $150.69 on November 1, 2023.
WHAT CAN I DO?
Paycom investors may, no later than January 9, 2024, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Paycom who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Paycom, Ventrillo Jr. v. Paycom Software, Inc., et al., Case No. 23-cv-01019, is filed in the United States District Court for the Western District of Oklahoma.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP