NEW YORK, NY/ACCESSWIRE/March 6, 2022/ Pomerantz LLP is investigating claims on behalf of investors in Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM). Such investors are encouraged to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation focuses on whether Affirm and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it had opened an investigation into the payment service offered by Affirm known as “buy-now, pay-later” (“BPL”). The CFPB issued an order to Affirm, along with four other companies offering BNPL, seeking information about Affirm’s facilitation of excessive consumer debt, regulatory arbitrage and data collection. The CFPB has expressed concern about “debt accumulation, regulatory arbitrage and data collection” and is seeking data on product risks and benefits. In a press release addressed to the services of the BNPL, the director of the CFPB declared: “[t]The consumer receives the product immediately, but he also incurs the debt immediately.”
On this news, Affirm’s stock price fell $11.74 per share, or 10%, to close at $99.24 per share on December 16, 2021.
Then, on Feb. 10, 2022, during market hours, Affirm’s stock price spiked after a tweet later deleted from the company’s official Twitter account posted second-quarter metrics. Then, still during market hours on the same day, Affirm tweeted a second tweet, attaching its quarterly results which included a third quarter revenue forecast that was missing some analyst estimates and included an expanded net loss.
On this news, Affirm’s stock price fell $12.13 per share, or 20.67%, to close at $46.55 per share on February 11, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com
THE SOURCE: Pomerantz LLP
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