||Fidelity National Information Services, Inc.
||United States District Court for the Middle District of Florida
||The Hon. Timothy J. Corrigan
||February 9, 2021 and February 10, 2023
Fidelity National investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than May 5, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Fidelity National Information Services, Inc. (“Fidelity National”) (NYSE: FIS) common stock between February 9, 2021 and February 10, 2023, both dates inclusive (the “Class Period”).
Fidelity National, which, in recent years, has become the largest processing and payments company in the world, is most known for its development of Financial Technology, or FinTech, and offers its solutions in three primary segments: Merchant Solutions; Banking Solutions; and Capital Market Solutions. The Merchant Solutions segment accounted for approximately 30% of the company’s total revenue in 2021, and serves merchants by enabling them to accept, authorize, and settle electronic payment transactions.
On July 31, 2019, Fidelity National announced it had closed the acquisition of payments company Worldpay, Inc. (“Worldpay”) for $43 billion, consisting of $35 billion in cash and the assumption of $8 billion in debt. As a result of the acquisition, the Worldpay business became part of the Merchant Solutions segment. Throughout the Class Period, Defendants assured investors it had “successfully completed the Worldpay integration” and touted the benefits of the Worldpay integration for the company.
Then, on August 4, 2022, Fidelity National announced that its CFO, James Woodall, planned to “step down” as Corporate Executive Vice President and CFO effective November 4, 2022. Following this news, the price of Fidelity National stock fell more than 7%, from a closing price of $104.13 per share on August 3, 2022 to a closing price of $96.57 per share on August 4, 2022.
Then October 18, 2022, Fidelity National announced that Stephanie Ferris, who was appointed President of the company in February and had served as the CFO of Worldpay, would become the new CEO effective January 1, 2023. The company also announced that the outgoing CEO, Gary Norcross, who had been with the company since 1988 and in the CEO role since 2015, would become Executive Chairman of the Board of Directors upon the transition.
On November 3, 2022, Fidelity National reported that its Merchant Solutions segment – namely Worldpay – suffered a “margin contraction of 430 basis points.” In response to this news, the price of Fidelity National stock declined more than 29%, from a closing price of $79.47 per share on November 2, 2022, to a closing price of $57.18 per share on November 3, 2022. Analysts reported the new Fidelity National management “recognize[d] the need to rebuild investor confidence.”
Finally, before market opened on February 13, 2023, Fidelity National announced it would spin off Worldpay, and in the process, the company recognized a stunning $17.6 billion write-down on the asset. Following this news, the price of Fidelity National stock fell more than 12%, from a closing price of $75.43 per share on the prior trading day of February 10, 2023, to a closing price of $66.00 per share on February 13, 2023.
The complaint alleges that, throughout the Class Period, Defendants misled investors and/or failed to disclose that: (1) the integration of Worldpay was not ahead of schedule; (2) the integration of Worldpay was not successfully completed during the Class Period; (3) the increases in revenue synergies were not driven by the Worldpay integration; and (4) as a result, Defendants’ positive statements about the company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.