Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In GreenSky, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in GreenSky, Inc. (“GreenSky” or the “Company”) (NASDAQ:GSKY) of the January 28, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in GreenSky Class A common stock pursuant or traceable to the Company’s April 2018 Initial Public Offering (“IPO”) and would like to discuss your legal rights, click here: www.faruqilaw.com/GSKY. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased GreenSky Class A common stock pursuant or traceable to the Company’s April 2018 IPO. The case, Mustafin v. GreenSky, Inc. et al, No. 18-cv-11071 was filed on November 27, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements in its registration statement and prospectus concerning the strength of the Company’s fee revenue model, the effect on profitability of the significant differences in transaction fees that GreenSky charged to different classes of merchants, and the extent to which the Company’s transaction fee rates depend on financing choices made by the consumer.
Specifically, on November 6, 2018, GreenSky issued a release announcing its financial results for the third quarter of 2018. The release indicated that the Company’s transaction-fee rate was 35 basis points below the rate achieved in the third quarter of 2017. In a conference call pertaining to the third quarter results, Company CEO David Zalik reiterated that the reduction in transaction fees was “entirely driven by our solar mix going from a high of almost 20% of our business in ’17 to 4% of our business.” Further, with only one quarter left in the year, GreenSky substantially reduced its 2018 outlook for Adjusted EBITDA from growth of 20-25% to 4-10%.
On this news, the Company’s stock price fell from $14.66 per share on November 5, 2018 to $9.28 per share on November 6, 2018—a $5.38 or 36.7% loss.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding GreenSky’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
GreenSky, Inc. (GSKY)
* The submission of this form does not create an attorney-client relationship.
Filed on 12/06/2018
685 Third Avenue 26th Floor
10017 New York, New York
Phone (212) 983-9330
Fax (212) 983-9331
Richard W. Gonnello firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331