I'm new to the board and my recent post was deleted as off topic. I have checked the rules and hope this one is not an off topic. Anyway, I apologize if this post will be seen as not helpful.
"Evidence shows that Lightspeed massively inflated its business pre-IPO, overstating its customer count by 85% and gross transaction volume ('GTV') by 10% – a payment volume metric that a former employee described as 'smoke and mirrors.'
"Evidence of declining organic growth and business deterioration through Lightspeed's IPO, despite management's claims that Average Revenue Per User ("ARPU") is increasing."
[http://www.sbwire.com/press-releases/nyselspd-shareholder-no...](http://www.sbwire.com/press-releases/nyselspd-shareholder-notice-investigation-possible-securities-laws-violations-1347371.htm)
Basically, a law firm accuse LSPD in false reporting. How do you treat such news?
Some metrics:
(Y,%) Mar,21 Mar,20 Mar,19 Mar,18
Sales Growth 84 56 37 34
Gross Margin 40 53 63 61
Net Margin -56 -44 -237 -169
(Q,%) 21Q2 21Q1 20Q4 20Q3
Sales Growth 220 127 79 62
Gross Margin 33 34 41 48
Net Margin -43 -51 -74 -43
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There are a number of post over the last couple of weeks discussing LSPD and this short attack. I would suggest you go back and read those. It is very common for these, I think, unscrupulous law firms to latch on to a short report that makes accusations against a company and then begin to solicit stock holders to join in a class action suit. The goal is to get the company to settle rather than fight. The law firms gets a few million, the shareholders get a check for 25 cents. (and yes years ago I used to join these things, before I got wise. I have received checks for 25 or 30 cents as my share of the settlement). It’s a racket, again just my opinion, but do go back and read post on LSPD from about three weeks ago now.
Mike
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