New York, New York--(Newsfile Corp. - May 17, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Paysign, Inc. ("Paysign" or the "Company") (NASDAQ: PAYS) of the May 18, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Paysign stock or options between March 12, 2019 - March 15, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/PAYS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of Nevada on behalf of all those who purchased Paysign securities between March 12, 2019 and March 15, 2020 (the "Class Period"). The case, Shi v. Paysign, Inc. et al, No. 20-cv-00553 was filed on March 19, 2020 and has been assigned to Judge Gloria M. Navarro.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Paysign's internal control over financial reporting was not effective; (2) Paysign's information technology general controls were not effective; and (3) as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on March 16, 2020, before the market opened, Paysign filed a Form 12b-25, disclosing it was unable to timely file its annual report for the fiscal year ended December 31, 2019 due to requiring additional time to complete the Company's financial audit. The Company also identified material weaknesses in its internal controls relating to financial reporting and its information technology general controls.
On this news, Paysign's stock fell from a closing price of $5.52 on March 13, 2020 to $4.59 on March 16, 2020-a $0.93 or 16.85% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Paysign's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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