Kaskela Law LLC is investigating potential breach of fiduciary duty claims concerning Paycom Software, Inc. (NYSE: PAYC) (“Paycom”) on behalf of the company’s long-term shareholders.

Recently a securities fraud complaint was filed against Paycom on behalf of certain investors who purchased shares of the company’s stock between February 8, 2022 and October 31, 2023.  According to the complaint, during that time period, Paycom and several of the company’s senior executive officers made a series of materially false and misleading statements and/or failed to disclose, among other things, that Paycom’s Beti product had led (and would lead) to cannibalization of the company’s services and revenues.

On August 1, 2023, Paycom reported disappointing quarterly financial and operational results for the 2023 second quarter.  During a conference call discussing those results, Paycom’s CFO “revealed an expected weakness in Paycom’s future revenue results and attributed that weakness only to the previously-undisclosed negative impacts Beti was having” on the company’s Client Relations Representatives ability to cross-sell products.  Following this news, shares of the company’s stock declined $71.16 per share, or nearly 20% in value, to close on August 2, 2023 at $299.62 per share, on heavy trading volume.

Subsequently, on October 31, 2023, Paycom revealed that it had been making previously undisclosed “strategic performance and client value decisions” and “strategic revenue decisions” that had, and would continue to, result in a dramatic deceleration in the Company’s revenue growth rates.  Following this additional disclosure, shares of Paycom’s stock declined an additional $94.28 per share, or over 38% in value, to close on November 1, 2023 at $150.69 per share, again on heavy trading volume.

The investigation seeks to determine whether the members of Paycom’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

Current Paycom shareholders who have owned the company’s shares since at least January 1, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information – at no cost – about this investigation and their legal rights and options.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
([email protected])
Adrienne Bell, Esq.
([email protected])
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750