Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Dec. 13, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Expensify, Inc. (“Expensify” or the “Company”) (NASDAQ: EXFY) investors that a lawsuit filed on behalf of investors that purchased Expensify securities pursuant and/or traceable to the Offering Documents issued in connection with the Company’s November 2021 initial public offering (the “IPO” or “Offering”)
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
- Expensify initiated its IPO on or around November 11, 2021, offering 9.73 million shares at $27 each. Later, on June 12, 2023, Morgan Stanley downgraded Expensify from Equal-weight to Underweight due to structural challenges and a risky reward profile. Consequently, the stock price dropped by $0.45, or 6.3%, ending at $6.72 per share, resulting in investor losses.
- Subsequently, on August 8, 2023, Expensify announced its Q2 2023 financials, revealing a GAAP EPS of -$0.14, below the expected -$0.07, and revenues of $38.9 million, missing the $41.5 million forecast. The company also retracted its revenue growth forecast. Following this, the stock price plunged by $1.69, or 28.6%, closing at $4.23 per share on August 9, 2023, further harming investors.
- Moreover, on November 7, 2023, Expensify disclosed its Q3 2023 financial results after market close, again falling short of expectations with a GAAP loss of $0.21 per share and a 14.1% decline in year-over-year revenue. This news caused a further drop in stock price by $1.07, or 36.9%, closing at $1.83 per share on November 8, 2023, exacerbating investor losses.
- The lawsuit filed in this case claims that during the Class Period, the Defendants consistently made false and/or misleading statements and did not disclose crucial negative details about Expensify's business, operations, and future prospects. Specifically, the Defendants didn't inform investors that: (1) Expensify's revenue growth was highly vulnerable to structural and economic challenges; (2) thus, the company overestimated the success of its business model and its capability to achieve long-term growth projections as promoted in the IPO documents; (3) as a result, the company's financial situation and/or business prospects post-IPO were overstated; and (4) consequently, the Defendants' optimistic statements about the company's business, operations, and prospects were significantly misleading and/or lacked a reasonable basis at all times.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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