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Robbins Arroyo LLP: GreenSky, Inc. (GSKY) Misled Shareholders According to Class Action

December 3, 2018

SAN DIEGO & ATLANTA--(BUSINESS WIRE)--Dec 3, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of GreenSky, Inc. (NasdaqGS: GSKY) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company’s May 2018 initial public offering (“IPO”). GreenSky, a technology company, provides point-of-sale financing and payment solutions to merchants, consumers, and banks.

View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/greensky-inc-nov-2018/

GreenSky Accused of Failing to Disclose Company’s Shift in Merchant Business Mix

According to the complaint, GreenSky held its IPO on May 29, 2018, generating over $1 billion in gross proceeds, based on misleading offering documents. The offering documents characterized GreenSky’s fee revenue model as “strong” and “recurring,” and painted a rosy picture of GreenSky’s growth while failing to mention the simultaneous deterioration in the company’s transaction-fee revenue. The misinformation came to light when GreenSky began reporting dismal financial results less than three months later on August 7, 2018, citing a merchant business mix shift from solar panel merchants to merchants in the elective healthcare industry and a resulting drastically reduced transaction-fee rate. When GreenSky again reported disappointing results and lowered its guidance, GreenSky’s stock fell to $9.28 per share on November 6, 2018—nearly 60% below the company’s $23.00 IPO price—and has yet to recover.

GreenSky Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.

Robbins Arroyo 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. Sign up for our FREE portfolio monitoring service, Stock Watch.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181203005902/en/

CONTACT: Leonid Kandinov

Robbins Arroyo LLP

LKandinov@robbinsarroyo.com

(619) 525-3990 or Toll Free (800) 350-6003

www.robbinsarroyo.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA GEORGIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL

SOURCE: Robbins Arroyo LLP

Copyright Business Wire 2018.

PUB: 12/03/2018 02:28 PM/DISC: 12/03/2018 02:29 PM

http://www.businesswire.com/news/home/20181203005902/en

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