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Paycom Software Inc. Class Action Alert: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the Western District of Oklahoma against Paycom Software Inc.
News provided byWolf Haldenstein Adler Freeman & Herz LLP
Nov 21, 2023, 6:30 AM ET
Upcoming Lead Plaintiff Deadline is January 9, 2024
NEW YORK, Nov. 21, 2023 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein") announces that a federal securities class action lawsuit has been filed in the United States District Court for the Western District of Oklahoma against Paycom Software Inc. ("Paycom" or the "Company") (NYSE: PAYC) on behalf of shareholders who suffered losses on shares purchased during the period from May 3, 2023 through November 1, 2023 (the "Class Period"), inclusive.
All investors who purchased shares and incurred losses are advised to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than January 9, 2024, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
The filed complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that:
- Paycom's Beti product led to cannibalization of the Company's services and revenues;
- Paycom knew but failed to disclose that Beti was leading to cannibalization of the Company's services and revenues, and failed to warn of cannibalization as a general risk;
- as a result of cannibalization of revenue, Paycom missed its expected Q3 2023 revenue and would have to revise its expected 2023 revenues guidance; and
- the cannibalization issue resulted in projected 2024 year-over-year revenue growth to between 10% and 12%, well below expectations.
On October 31, 2023, Paycom filed with the United States Securities and Exchange Commission ("SEC") on Form 8-K, announcing its financial results for the third quarter of 2023. On the same day, Paycom's Chief Executive Officer Chad Richison and Chief Financial Officer Craig E. Boelte participated in the
Company's third quarter of 2023 earnings call during which the Company announced that its Beti product—a self-service payroll technology—was cannibalizing a portion of Paycom's services and revenues. The cannibalization of revenue led the Company to miss its expected revenues for the third quarter of 2023, reporting revenue of $406.3 million compared with its prior projection of $410-$412 million. Additionally, the cannibalization of services and revenues caused Paycom to lower its projected fiscal 2023 revenues from the previously projected range of $1.715-$1.717 billion to $1.679-$1.684
On this news, the price of Paycom shares declined by $94.28 per share, or approximately 38.49%, from $244.97 per share to close at $150.69 on November 1, 2023.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at firstname.lastname@example.org.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
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