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UPDATED CLASS PERIOD: Lightspeed Commerce Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit – LSPD

Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Lightspeed Commerce Inc. (NYSE: LSPD) securities between September 11, 2020 and November 3, 2021, inclusive (the “Class Period”) have until January 18, 2022 to seek appointment as lead plaintiff in the Lightspeed Commerce class action lawsuit. The first-filed complaint – captioned Nath v. Lightspeed Commerce Inc., No. 21-cv-06365 (E.D.N.Y.) – was commenced on November 16, 2021 and charges Lightspeed Commerce along with certain of its top executives with violations of the Securities Exchange Act of 1934. A similar lawsuit – Pappas v. Lightspeed Commerce Inc., No. 21-cv-10304 – is pending in the Southern District of New York.

If you wish to serve as lead plaintiff of the Lightspeed Commerce class action lawsuit, please provide your information by clicking here. You can also contact attorney Mary K. Blasy of Robbins Geller by calling 800/449-4900 or via e-mail at mblasy@rgrdlaw.com. Lead plaintiff motions for the Lightspeed Commerce class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: Lightspeed Commerce provides commerce enabling software as a service platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally. On September 15, 2020, Lightspeed Commerce completed its U.S. initial public offering (“IPO”) and listing on the New York Stock Exchange of nearly 11 million shares of its common stock, receiving proceeds of more than $332 million. A secondary sale of more than 2 million shares by certain selling shareholders was also completed that same day for gross proceeds of more than $65 million.

The Lightspeed Commerce class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Lightspeed Commerce had overstated its pre-IPO business metrics and financial prospects by overstating its true customer count by 85%; (ii) Lightspeed Commerce had overstated its pre-IPO business metrics and financial prospects by overstating its true gross transaction volume (“GTV”) – a payment volume metric that a former employee describes as “smoke and mirrors” – by 10%; (iii) Lightspeed Commerce was then overstating its business metrics and financial prospects by concealing declining organic growth and business deterioration; (iv) Lightspeed Commerce was also overstating its business metrics and financial prospects by claiming that its Average Revenue Per User (“ARPU”) was increasing; (v) Lightspeed Commerce had undertaken an acquisition spree at escalating costs with no clear path to profitability, while its management pursued aggressive revenue reporting practices; and (vi) defendants had been operating Lightspeed Commerce with defective internal controls and ineffective oversight of its accounting practices by its outside audit firm.

On September 29, 2021, Spruce Point Capital Management published a report regarding Lightspeed Commerce and also issued a press release summarizing its findings. The release stated, among other things, that “[e]vidence shows that Lightspeed massively inflated its business pre-IPO, overstating its customer count by 85% and [GTV] by 10%” – a payment volume metric that a former employee described as “‘smoke and mirrors’”; that there was “[e]vidence of declining organic growth and business deterioration through Lightspeed’s IPO, despite management’s claims that [ARPU] is increasing; and that Lightspeed Commerce’s [r]ecent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices.” On this news, Lightspeed Commerce’s stock price fell by more than 12%.

Then, on November 4, 2021, Lightspeed Commerce issued a press release announcing its second quarter 2022 financial results for the interim period ended September 30, 2021. While Lightspeed Commerce’s second quarter 2022 revenue grew 193% on a year-over-year basis to $133.2 million, a full half of that revenue came from new business acquisitions, while organic revenue in its core segments – subscriptions and transcriptions – grew a mere 58% – well below the 78% growth Lightspeed Commerce had just touted on November 3rd in disputing the Spruce Point Capital report findings. More critically, Lightspeed Commerce’s guidance for the rest of its fiscal year 2022 (“FY22”) demonstrated that its earlier revenue growth had indeed been driven primarily by the acquisitions as the Spruce Point Capital report had charged, and that those tailwinds were now rapidly fading. For its third quarter 2022, Lightspeed Commerce was now only forecasting revenues in the range of $140 million to $145 million – or a paltry 7% sequential revenue growth. And for FY22, Lightspeed Commerce was now only guiding for revenues of $520 million to $535 million, implying no sequential growth whatsoever in Lightspeed Commerce’s fourth quarter of 2022. On this news, Lightspeed Commerce’s stock price further fell by nearly 28%, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Lightspeed Commerce securities during the Class Period to seek appointment as lead plaintiff in the Lightspeed Commerce 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 Lightspeed Commerce class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Lightspeed Commerce class action lawsuit. An investor’s ability to share in any potential future recovery of the Lightspeed Commerce class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.

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Contacts

Robbins Geller Rudman & Dowd LLP

655 W. Broadway, San Diego, CA 92101

Mary K. Blasy, 800-449-4900

mblasy@rgrdlaw.com

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