LivePerson, Inc. (LPSN) Investigation

Once viewed as a hot AI stock pick, LivePerson has reported a series of a disappointing quarters, leading to the ouster of its Founder and CEO Robert LoCascio in Aug. 2023 and the steep decline of its share price.

On Feb. 28, 2024, LivePerson delivered more bad news when it announced its Q4 2023 financial results and its 2024 outlook.  The company reported Q4 revenues of $95.5 million, falling about 22% year over year and 6% sequentially. The company blamed the poor results and dismal guidance on customer renewal challenges and cancellations that it began to see 9 to 12 months ago.

During the earnings call, LivePerson’s CFO (John Collins) said that for 2024 “we expect revenue to be in the range of $300 million to $315 million[]” and “[t]his range is heavily impacted by the concentration of cancellations in the first quarter, which have full year revenue impact.” 

In response to these events, the price of LivePerson crashed $1.12, or over 47% lower, on Feb. 29, 2024.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LPSN investigation about?

We are investigating whether LivePerson may have misled investors about its ability to attract and retain customers and generate sustainable growth.

WHAT SHOULD I DO?

I worked at LPSN. What should I do?

If you were an employee of LPSN, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LPSN, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LPSN investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.