SAN DIEGO, Dec. 21, 2023 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that purchasers of Paycom Software, Inc. (NYSE: PAYC) common stock between February 9, 2022 and October 31, 2023, inclusive (the “Class Period”), have until January 9, 2024 to seek appointment as lead plaintiff of the Paycom class action lawsuit. Captioned Caloto v. Paycom Software, Inc., No. 23-cv-11086 (S.D.N.Y.), the Paycom class action lawsuit charges Paycom and certain of its top executives with violations of the Securities Exchange Act of 1934. A previously filed complaint, captioned Ventrillo v. Paycom Software, Inc., No. 23-cv-01019, is pending in the Western District of Oklahoma.
If you suffered substantial losses and wish to serve as lead plaintiff of the Paycom class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-paycom-software-inc-class-action-lawsuit-payc.html
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.
CASE ALLEGATIONS: Paycom provides cloud-based human resources and payroll functions for small to mid-sized companies. In July 2021, Paycom officially rolled out a new application called “Beti,” which stands for Better Employee Transaction Interface, as an enhancement to Paycom’s then-existing payroll offerings.
The Paycom class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Paycom had been relying upon a significant, but undisclosed, amount of one-off payroll correction fees to fuel its outsized revenue growth; (ii) increased adoption of Beti by Paycom’s payroll customers was cannibalizing the fees Paycom had previously been charging to correct common payroll mistakes and to provide related services; and (iii) the increased Beti adoption was decreasing Paycom’s gross profit margins.
On August 1, 2023, Paycom announced its gross margin for the second quarter of 2023 declined from 84.2% to 83.2%. Paycom further projected revenue guidance for the third quarter of 2023 between $410 million to $412 million, below market expectations. On this news, the price of Paycom stock fell more than 19%.
Then, on October 31, 2023, Paycom disclosed that increased Beti adoption had been cannibalizing the one-off fees Paycom had previously been receiving for correcting payroll errors and that Paycom had been relying on those additional payroll correction fees to support its past outsized revenue growth. On this news, the price of Paycom stock fell more than 38%.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Paycom common stock during the class period to seek appointment as lead plaintiff of the Paycom class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Paycom class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Paycom class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Paycom class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
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Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
jsanchez@rgrdlaw.com
