Case name:
Nuvei Corporation Class Action (NVEI)
Quebec Superior Court file #:
500-06-001173-216
What this case is about:
On December 8, 2021, Spruce Point Capital Management LLC published a report concerning Nuvei Corporation (NVEI) titled “Fool me once, twice, but not three times” (the “Report”). The Report notably made the following allegations: “After conducting a forensic financial and accounting review, Spruce Point believes shares of Nuvei Corp. (TSX and Nasdaq: NVEI), a highly promoted payments processing technology company, has covered up a pattern of business failures, lack of organic growth, and a web of relationships with individuals connected to major Ponzi Schemes and alleged fraudulent activities… In addition, we believe Nuvei does business with the adult film industry, which could make its stock ownership unpalatable to ESG focused funds. Nuvei commands a premium valuation, but we believe it should trade at a discount to incorporate our documented concerns. We see 40%–60% downside risk”. By 10:20 a.m. on December 8, 2021, Nuvei’s share price lost more than 50% of its value.
Accordingly, Nuvei may have issued materially misleading information to investors.
Proposed Class:
All persons and entities who acquired Nuvei’s securities on or after September 17, 2020 to December 7, 2021, and held some or all of those securities until after the close of trading on December 7, 2021.
Remedies sought:
This class action is claiming civil and statutory damages pursuant the Securities Act and the Civil Code of Quebec.
Status:
Pending authorization hearing as against Nuvei. In the interim, a settlement has been reached with PricewaterhouseCoopers LLP (“PwC”). The settlement approval hearing will take place on December 20 at 9:30 a.m., in a room 15.09 of the Montreal courthouse and by videoconference. Copies of the settlement and notice to class members are accessible in the documents section below.
Documents:
