The complaint alleges that, throughout the Class Period, Shift4 failed to disclose material adverse facts about the company’s business, operations, and compliance policies.

Investors began to learn the truth on October 21, 2022, when Shift4 disclosed in an SEC filing that the Company’s third quarter 2021, full year 2021, first quarter 2022, and second quarter 2022 financial statements should no longer be relied upon and would need to be restated because of a material weakness in the company’s financial controls. According to the company, this material weakness had caused it to incorrectly treat “customer acquisition costs” as cash used in investing activities rather than cash used in operating activities in its Consolidated Statements of Cash Flows.

Following this news, Shift4’s stock price fell $1.21 per share, or 2.67%, to close at $44.16 per share on October 24, 2022.

Then, on April 19, 2023, Blue Orca Capital published a report alleging, among other things, that “Shift4 [is], in reality, a roll-up of low-tech POS systems and payment processors which is substantially less profitable, generates far less cash, and is materially more levered than investors are led to believe.”

Following this news, Shift4’s stock price fell $5.95 per share, or 8.68%, to close at $62.59 per share on April 19, 2023.

Investors who purchased or acquired Shift4 securities between November 10, 2021 and April 18, 2023 may, no later than October 19, 2023, seek to be appointed as a lead plaintiff representative of the class.