INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Global Payments, Inc. (NYSE: GPN) Shareholders
NEWTOWN, PA, February 24, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Global Payments, Inc. (“Global Payments” or the “Company”) (NYSE: GPN) common stock.
Investors who purchased Global Payments, Inc. common stock between October 31, 2019, and October 18, 2022, both dates inclusive (the “Class Period”) may move the U.S. District Court for the Northern District of Georgia to appoint them as lead plaintiff, no later than April 10, 2023. Current holders of Global Payments stock may pursue corporate governance reforms. Investors who wish to discuss Global Payments stock should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Global Payments
Global Payments is a leading American payments technology company that delivers innovative software and services to merchants and financial institutions worldwide. It is headquartered in Atlanta, Georgia. In June 2021, the Company was named to the Fortune 500. One of Global Payments’ wholly owned subsidiaries is Active Network, which provides third-party registration and payment processing services to consumers signing up to participate in events.
The Securities Fraud Claims
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, Defendants made false and misleading statements and/or failed to disclose that: (i) Active Network used deceptive and abusive practices to dupe customers into enrolling in Active Network’s own discount club (ii) since July 2011, Active Network, and by extension Global Payments, was aware of such unauthorized conduct and that it violated laws aimed at protecting consumers; (iii) since 2011, Global Payments failed to properly monitor its subsidiary from engaging in such unlawful conduct, detect and stop this misconduct, and identify and remediate harmed consumers. As a result of the forgoing, the Company was subjected to a foreseeable risk of heightened regulatory scrutiny or investigation, and the Company’s revenue was, in part, the product of Active Network’s unlawful conduct and inherently unsustainable.
On October 18, 2022, the truth about Global Payments’ practices was disclosed when the Consumer Financial Protection Bureau (“CFPB”) issued a Complaint against Active Network for illegally cramming consumers with membership fees. On this news, the price of Global Payments’ stock fell precipitously and closed at $113.67 on October 18, 2022.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.