Gibbs Law Group Investigates Potential Securities Law Violations
Shares of LivePerson, Inc. dropped 57% on March 16, 2023, after reporting an unexpected fourth-quarter loss as Medicare suspended reimbursements to one of LivePerson’s subsidiaries “pending further governmental review.” Gibbs Law Group is investigating a potential LivePerson, Inc. (LPSN) Securities Class Action Lawsuit on behalf of shareholders who lost money in LivePerson, Inc. (NASDAQ: LPSN).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Thursday, March 16, 2023, shares of customer service technology company LivePerson, Inc. dropped after the company published its fourth-quarter earnings results, showing both a revenue decline and earnings miss. The Company also disclosed that Medicare suspended reimbursements for WildHealth, one of its subsidiaries, “pending further governmental review.” LivePerson stated “[w]hile the Company currently believes that the services rendered under the Program in the fourth quarter of 2022 were valid, in view of the inherent uncertainty as to the timing and amount of further reimbursement for services rendered under the Program, the Company has elected to take a reserve for revenue associated with services delivered under the Program in the fourth quarter of 2022 for which payment has not been collected.”
Previously, on February 28, 2023, the day before the company was supposed to file its fourth-quarter earnings results, LivePerson filed an extension with the SEC to delay its 10-K report until March 16, 2023. LivePerson stated the reason for the delay was related to its acquisition of precision healthcare company WildHealth for $22 million last year and said it needed to conduct additional review of revenue recognition.
Following this news, LivePerson’s stock price dropped 57% on March 16, 2023, causing significant harm to investors.
What Should LivePerson Investors Do?
If you invested in LivePerson, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether LivePerson, Inc. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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