Shareholder Alert: Robbins LLP Reminds Investors PaySign, Inc. (PAYS) Sued for Misleading Shareholders

Shareholder rights law firm Robbins LLP reminds investors that a purchaser of PaySign, Inc. (NASDAQ: PAYS) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between March 12, 2019 and March 15, 2020. PaySign provides prepaid card programs and processing services.

If you suffered a loss as a result of PaySign's misconduct, click here.

PaySign, Inc. (PAYS) Accused of Misleading Shareholders

According to the complaint, on March 12, 2019, PaySign attested to its accuracy over financial reporting and acknowledged the importance of its computer network systems in accurately processing its transactions and assured its internal controls were effective. These same statements were reiterated in its following quarterly reports for 1Q to 3Q 2019, each time affirming that there "were no changes in [its] internal controls over financial reporting that occurred during the quarter…that have materially affected…[its] internal control over financial reporting." Contrary to PaySign's assurances, on March 16, 2020, PaySign announced that it would be unable to timely file its annual report for fiscal year 2019, stating "the filing extension will provide the necessary time to complete [PaySign's] financial audit" and revealing it had identified "material weaknesses related to its assessment of internal controls over financial reporting and information technology general controls." Then, on March 31, 2020, PaySign once again announced that it would be delaying the release of its 2019 financial results. On this news, shares of PaySign fell 16% to close at $4.35.

If you purchased PaySign, Inc. (PAYS) securities between March 12, 2019 and March 15, 2020, you have until May 18, 2020, to ask the court to be appointed lead plaintiff for the class.

Contact us to learn more: Leo Kandinov [phone] [e-mail] Shareholder Information Form

Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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