If you invested in Paycom and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »

CLASS PERIOD
03/03/2023 - 11/01/2023

LEAD PLAINTIFF DEADLINE
01/09/2024

RELATED DOCUMENTS
Complaint 11/10/23

STOCK SYMBOL
NYSE: PAYC

CONTACT
844-916-0895
PAYC@hbsslaw.com

The complaint alleges that Paycom made materially false and misleading statements and failed to disclose that: (1) Paycom’s Beti product led to cannibalization of the company’s services and revenues; (2) Paycom knew but did not disclose the cannibalization problem and did not warn of cannibalization as a general risk; (3) as a result of cannibalization, Paycom missed its expected 3Q 2023 revenue and would have to revise its expected FY 2023 revenues; and (4) the cannibalization issue resulted in 2024 year-over-year revenue growth sharply lower.

Investors learned the truth on Oct. 31, 2023, when Paycom reported its Q3 2023 financial results, including disappointing Q3 revenues, and guided for Q4 2023 and 2024 revenues that were significantly below consensus estimates. At the earnings call, Paycom CFO Craig Boelte explained that Paycom’s growth is being curbed by cannibalization, noting that clients have been cutting down spending on some services and other purchases because Beti has made them nonessential.

In response, the price of Paycom shares crashed $94.28 lower (or down about 38%) on Nov. 1, 2023.

If you invested in Paycom and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses.

Whistleblowers: Persons with non-public information regarding Paycom should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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 PAYC@hbsslaw.com.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the PAYC securities class-action case about?

This lawsuit on behalf of investors nationwide alleges Paycom made materially false and misleading statements and failed to disclose that: (1) Paycom’s Beti product led to cannibalization of the company’s services and revenues; (2) Paycom knew but did not disclose the cannibalization problem and did not warn of cannibalization as a general risk; (3) as a result of cannibalization, Paycom missed its expected 3Q 2023 revenue and would have to revise its expected FY 2023 revenues; and (4) the cannibalization issue resulted in 2024 year-over-year revenue growth sharply lower.

WHAT SHOULD I DO?

I worked at PAYC. What should I do?

If you were an employee of PAYC during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. 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 PAYC@hbsslaw.com.

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 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 PAYC during the relevant period specified in the class-action lawsuit, 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 PAYC investor participate?

In most class-action 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 class-action 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 neet to sell to participate. Fill out the form to find out your rights.

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