Kaskela Law LLC is investigating PaySign, Inc. (“Paysign” or the “Company”) (NASDAQ: PAYS) on behalf of the Company’s stockholders.
Recently an amended securities fraud complaint was filed against PaySign on behalf of investors who purchased shares of the Company’s common stock between March 12, 2019 and March 31, 2020. According to the complaint, during that time period PaySign and certain of the Company’s executive officers made a series of false and/or misleading statements to investors concerning material weaknesses in PaySign’ internal controls over financial reporting.
As detailed in the complaint, on March 16, 2020, PaySign announced a delay in the filing of its Annual Report for Fiscal 2019 because of a material weakness in the Company’s internal controls over financial reporting and information technology general controls. On this news, shares of PaySign’s common stock declined by nearly 17% in value, to close at $4.59 per share on March 16, 2020.
Approximately two weeks later, on March 31, 2020, Paysign issued a press release announcing that it would again postpone its earnings results call, scheduled for that same day, “to complete its year-end closing procedures.” On this additional news, shares of PaySign’s common stock further declined in value by over 22%.
The investigation seeks to determine whether the members of PaySign’s board of directors breached their fiduciary duties to the Company and its stockholders in connection with the above alleged misconduct.
Current PaySign stockholders who purchased or acquired shares of PaySign’s common stock prior to July 1, 2019 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by competing the information form on this page, for additional information about this investigation and their legal rights and options.