| COMPANY |
Marqeta, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
24-cv-08874 |
| JUDGE |
The Hon. Yvonne Gonzalez Rogers |
| CLASS PERIOD |
May 7, 2024, through November 4, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS FEBRUARY 7, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
Marqeta, a Delaware corporation with its principal executive offices in Oakland, California, offers digital payment processing services, and for most of its customers, acts as a card program manager.
On November 4, 2024, after the market closed, Marqeta announced its third quarter 2024 financial results and revealed fourth quarter 2024 guidance of 10-12% net revenue growth, down from previously projected 16-18% net revenue growth, and 13-15% gross profit growth, down from 22-24% gross profit growth previously projected, attributed to “several changes that became apparent over the last few months with regard to the heightened scrutiny of the banking environment and specific customer program changes.” On the corresponding earnings call, Defendant Simon Khalaf, the company’s Chief Executive Officer, admitted that Marqeta was aware that “last year, the regulatory environment changed amongst the smaller banks” but that the company “underestimated” the “burden these changes made” which “translated into delays in launching new programs” which Marqeta expected to continue for “at least two additional quarters.” On this news, the price of Marqeta Class A common stock declined $2.53 per share, or approximately 42.5%, from a close of $5.95 per share on November 4, 2024, to close at $3.42 per share on November 5, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Marqeta understated the regulatory challenges affecting its business outlook; (2) as a result, Marqeta would have to cut its guidance for the fourth quarter of 2024; and (3) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
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.