Company: GreenSky, Inc.
Class Period: May 29, 2018 — November 5, 2018
Court: U.S.D.C. – Southern District of New York
Deadline: January 28, 2019
Kaskela Law LLC announces that a class action lawsuit has been filed against GreenSky, Inc. (NASDAQ: GSKY) (“GreenSky” or the “Company”) on behalf of investors who purchased the Company’s common stock pursuant or traceable to GreenSky’s May 2018 initial public offering (“IPO”) of stock.
On or about May 29, 2018, GreenSky completed its IPO of common stock by selling over 43.7 million shares of stock to investors at $23.00 per share. As detailed in the class action complaint, GreenSky has two principal sources of revenue: (i) upfront “transaction fees” when a consumer secures a loan through its platform and pays for the purchase and (ii) fees from banks on a recurring basis over the lives of the loans it facilitates.
The complaint alleges that the offering documents filed in connection with the Company’s IPO were negligently prepared and contain untrue statements of material facts. Among other things, the complaint specifically alleges that the offering documents failed to disclose a substantial change in the composition of GreenSky’s merchant business mix, and a resulting diminution in transaction-fee revenue.
On November 6, 2018, GreenSky reported its financial and operational results for the third quarter of 2018, and sharply reduced its 2018 financial guidance “[b]ased on the Company’s performance through the end of the third quarter, and current market conditions.” Following this news, shares of the Company’s stock declined from $14.66 to $9.28, a one-day decline in value of $5.38 per share, or over 36%. Further, the closing price of the Company’s shares on November 6, 2018 represented a cumulative decline of $13.72 per share, or nearly 60% decline in share value, since the Company’s May 2018 IPO.
IMPORTANT DEADLINE: Investors who purchased GreenSky’s common stock pursuant or traceable to the Company’s May 2018 IPO may, no later than January 28, 2019, seek to be appointed as a lead plaintiff representative of the investor class.
Investors who purchased the Company’s common stock and suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 to discuss their important legal rights and options, or complete the form on this page for additional information.