Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of GreenSky, Inc. Investors (GSKY)

November 29, 2018

BENSALEM, Pa.--(BUSINESS WIRE)--Nov 28, 2018--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased GreenSky, Inc. (“GreenSky” or the “Company”) (NASDAQ: GSKY ) Class A common stock acquired in GreenSky’s initial public offering (“IPO”), which closed on May 29, 2018. GreenSky investors have until  January 28, 2019 to file a lead plaintiff motion.

Investors suffering losses on their GreenSky investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On November 6, 2018, GreenSky lowered its full year 2018 transaction volume guidance from between $5.1 and $5.3 billion to between $4.9 and $5.1 billion, and lowered its full year 2018 Adjusted EBITDA guidance from between $192 and $199 million to between $165 and $175 million. GreenSky attributed the reduction to a general labor shortage and unfavorable shifts in its loan mix. On this news, GreenSky’s share price fell $5.38 per share, or 36.7%, to close at $9.28 per share on November 6, 2018, thereby injuring investors.

The complaint filed in this class action alleges that Defendants made false and misleading statements and omissions in the Offering Documents about the revenue effects of the change in the classes of merchants for whom it facilitated loans. The Offering Documents did not disclose a significant change in GreenSky’s merchant business mix, a change that caused a drop in transaction revenue. Months after the IPO closed, the Company released a press release stating that its transaction-fee rate was considerably below that achieved in the third quarter of 2017. The Company blamed this drop on a general labor shortage, and a shifting loan mix. The Company’s statements and Offering Documents were false and materially misleading throughout the IPO period.

If you purchased shares of GreenSky, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181128005870/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire







SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2018.

PUB: 11/28/2018 07:44 PM/DISC: 11/28/2018 07:44 PM


Update hourly