GreenSky IPO Class Action Lawsuit Investigation
Attention: Anyone who purchased GreenSky’s Class A common stock during GreenSky’s IPO.
Berger Montague is conducting an investigation and asking to hear from anyone who purchased GreenSky’s Class A common stock pursuant or traceable to GreenSky’s Registration Statement and Prospectus in connection with the company’s initial public offering (“IPO”), which closed on May 29, 2018. GreenSky may have violated Sections 11, 12(a) and 15 of the Securities Act of 1933. We are interested in speaking with stock purchasers to help determine whether a class action lawsuit can be filed.
If you purchased GreenSky’s Class A common stock during GreenSky’s IPO or in the aftermarket up to November 5, 2018 and are interested in discussing a possible case, please contact Barbara A. Podell at 215-875-4690, Michael C. Dell’Angelo at 215-875-3080 or Phyllis M. Parker at 215-875-4647. The deadline for filing a motion for lead plaintiff in this case is January 28, 2019.
About the case
GreenSky, based in Atlanta, GA, describes itself as a “leading technology company that powers commerce at the point of sale” and that its “proprietary technology platform facilitates merchant sales while reducing the friction and improving the economics associated with a consumer making a purchase and a bank extending financing for that purchase.”
At least one complaint has been filed in the U.S. District Court for the Southern District of New York. The complaint alleges that GreenSky’s Registration Statement and Prospectus (“Offering Documents”), issued in connection with the company’s IPO, which closed on May 29, 2018, contained false and misleading statements and omissions about the impact GreenSky’s already-begun shift in its merchant loan mix would have on the Company’s main source of revenue: transaction fees. As alleged, the Offering Documents failed to disclose that GreenSky’s revenues would be reduced because of the expansion into the low transaction fee elective healthcare market – such as cosmetic dentistry, vision correction and hearing aid devices – and away from its historic solar panel business which paid higher than average transaction fees.
The complaint further alleges that on November 6, 2018, GreenSky announced its 2018 Q3 financial results, reporting substantially reduced 2018 outlook for Adjusted EBITDA. On the earnings call, GreenSky’s CEO reported that the reduction in transaction fees compared to the same quarter the previous year was “entirely driven by our solar mix going from a high of almost 20% of our business in 2017 to 4% of our business.”
At the close of trading on November 6, GreenSky’s stock plunged to a closing price of $9.28 per share from the previous day’s close of $14.66, a one-day loss of more than $1 billion in market capitalization. This was over 60% below the stock’s price of $23 per share at the company’s IPO, less than 6 months earlier. As of the close of trading on January 3, 2019, the stock traded at $9.55 per share.
Have other lawsuits been filed about this? Yes.
As mentioned above, to date, at least one complaint has been filed in the Southern District of New York against GreenSky, certain of its officers and directors and the underwriters in the IPO. The claims are brought on behalf of individuals or entities who purchased GreenSky’s Class A common stock pursuant or traceable to the company’s Offering Documents in connection with GreenSky’s IPO, which closed on May 29, 2018. The filing of the complaint and PSLRA notice has triggered the lead plaintiff deadline: January 28, 2019. In addition, at least three complaints have been filed in the Supreme Court of the State of New York, County of New York.
If you purchased GreenSky Class A common stock pursuant or traceable to the company’s IPO and wish to discuss this case and/or your potential losses, please contact Barbara A. Podell at 215-875-4690, Michael C. Dell’Angelo at 215-875-3080 or Phyllis M. Parker at 215-875-4647.
Do I have to pay to consult with an attorney?
We are happy to speak with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we win, and we will receive our fees from the amount paid by the Defendant in the case.