Lightspeed Class Action (LSPD)

Case name:

Quebec Superior Court file #:

500-06-001164-215

The Allegations:

On September 29, 2021, Spruce Point Capital Management LLC published a report concerning Lightspeed (LSPD) titled “Putting the Brakes on Lightspeed” (the “Spruce Report”). In brief, the Spruce Report revealed that Defendants enabled and/or engaged in a pattern of materiality inflating the size, quality, earnings, and growth prospects of Lightspeed’s business. For instance, they grossly overstated the Company’s pre-IPO customer count by 85%, its gross transaction volume (GTV) by at least 10%, its average revenue per user (ARPU), and, after having touted in March 2019 a total addressable market (TAM) of $113B to grow to $542B, they recently revised it down to $16B (despite $2.5B spent on acquisitions since the IPO). The Spruce Report further revealed that, throughout the Class Period, Defendants had been hiding Lightspeed’s massive organic decline, failing to make required goodwill impairments, and playing with the reporting of the Company’s revenues and earnings, as well as with the definition of some of its key performance indicators (KPIs), in a way that misled investors

Accordingly, Lightspeed may have issued materially misleading information to investors.

Proposed Classes:

Primary Market Sub-Class:

All persons and entities who acquired Lightspeed Commerce Inc. or Lightspeed POS Inc. securities in an Offering on or after March 7, 2019, and held some or all of those securities until after the close of trading on (1) September 28, 2021 or (2) November 3, 2021, excluding United States residents who acquired Lightspeed Commerce Inc. or Lightspeed POS Inc. securities in an Offering in the United States between September 11, 2020 and September 28, 2021.

Secondary Market Sub-Class:

All persons and entities who acquired Lightspeed Commerce Inc. or Lightspeed POS Inc. securities on the secondary market on or after March 7, 2019, and held some or all of those securities until after the close of trading on (1) September 28, 2021 or (2) November 3, 2021, excluding investors who acquired Lightspeed Commerce Inc. or Lightspeed POS Inc. securities on a U.S. exchange between September 11, 2020 and September 28, 2021.