Affirm Holdings Class Action Lawsuit (AFRM Lawsuit)
A lawsuit has been filed in the Northern District of California against Affirm Holdings Inc., (AFRM:NASDAQ) as Affirm’s “buy-now, pay-later” service facilitated excessive consumer debt, regulatory arbitrage, and data harvesting. AFRM stock fell 10.58%.
What is The Affirm Holdings Lawsuit About?
The Affirm Holdings Class Action Lawsuit (NASDAQ:AFRM) (Affirm Holdings Class Action Lawsuit) was filed after the market closed on December 8, 2022.
On December 16, 2021, the Consumer Financial Protection Bureau (“CFPB”) announced that it had launched an inquiry into Affirm’s BNPL payment service, along with four other companies offering BNPL.
Is There An Affirm Holdings Class Action Lawsuit?
AFRM:NASDAQ Class Action Lawsuit (Affirm Holdings) was filed on December 8, 2022 on behalf of the shareholders. On December 16, 2021, the Consumer Financial Protection Bureau (“CFPB”) announced that it had launched an inquiry into Affirm’s BNPL payment service, along with four other companies offering BNPL.
The CFPB indicated that it was concerned about how BNPL leads to “accumulating debt, regulatory arbitrage, and data harvesting,” and is seeking data on the risks and benefits of the products.
In a statement addressing BNPL services, the CFPB Director stated, “the consumer gets the product immediately but gets the debt immediately too.”
On this news, Affirm’s stock price fell $11.74 per share, or 10.58%, to close at $99.24 per share on December 16, 2021.
Is There A Deadline For The AFRM Lawsuit?
The deadline for Affirm Holdings Class Action Lawsuit (NASDAQ:AFRM) (Affirm Holdings Inc.) is February 6, 2023 for a Lead Plaintiff.
How Much Did Shareholders Lose In AFRM Stock?
Shareholders who held Affirm Holdings Inc. securities saw Affirm’s stock price fell $11.74 per share, or 10.58%, to close at $99.24 per share on December 16, 2021.
What Is The Affirm Holdings Lawsuit Complaint?
An AFRM class action lawsuit (Affirm Holdings Class Action Lawsuit) has been filed on behalf of investors who purchased Affirm Holdings Class Action Lawsuit (AFRM) securities between February 12, 2021 – December 15, 2021, inclusive. For more on the AFRM Lawsuit please contact us today.
According to the Affirm Holdings lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(i) Affirm’s “buy-now, pay-later” service facilitated excessive consumer debt, regulatory arbitrage, and data harvesting;
(ii) the foregoing subjected Affirm to a heightened risk of regulatory scrutiny and enforcement action; and
(iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you suffered a loss in AFRM, you have until February 6, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Securities Class Action Attorneys
Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired AFRM securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The AFRM class-action lawsuit is directed by the lead plaintiff. To litigate the Affirm Holdings Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the Affirm Holdings.
What Does AFRM Do?
Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally.
The company’s platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging from one to sixty months.
As of June 30, 2022, the company had approximately 235,000 merchants integrated on its platform covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence.
Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel and ticketing, apparel, accessories, consumer electronics, and jewelry.
Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.