Please complete this form relating to your transactions in Paycom Software, Inc. (NYSE: PAYC) securities between May 3, 2023 and November 1, 2023, both dates inclusive (the “Class Period”).
You may also contact Jonathan Naji, Esq. (484) 270-1453; or you may submit your information via email at email@example.com; or you may click here to print a PDF of this form.
Paycom 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 January 9, 2024 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 Paycom Software, Inc. (“Paycom”) (NYSE: PAYC) securities between May 3, 2023 and November 1, 2023, both dates inclusive (the “Class Period”).
The Class Period begins on May 3, 2023, following the company’s after-market earnings call, which was held the day before. During the May 2, 2023 earnings call and throughout the Class Period, Paycom repeatedly made materially false and misleading statements which extolled Beti’s purported benefits – which Paycom touted as “the industry’s first self-service payroll technology” - while omitting that it was also cannibalizing the company’s services and revenues.
On October 31, 2023, Paycom shocked the market when it reported its Q3 2023 financial results. In the results, Paycom disclosed disappointing Q3 revenues, revenues guidance for Q4 2023, and an initial 2024 outlook for 10% to 12% revenue growth. Paycom’s reported financial results fell significantly below consensus estimates. On an earnings call held that same day discussing the results, Paycom’s CEO and CFO disclosed that the company’s Beti product was cannibalizing a portion of Paycom’s services and revenues, which led the company to miss its expected revenues for Q3 2023. Likewise, the cannibalization of services and revenues caused Paycom to lower its projected fiscal 2023 revenues.
Following this news, the price of Paycom shares declined by $94.28, or approximately 38.49%, from $244.97 per share to $150.69 on November 1, 2023.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Paycom’s Beti product led to cannibalization of Paycom’s services and revenues; (2) Paycom knew but failed to disclose that Beti was leading to cannibalization of Paycom’s services and revenues, and failed to warn of cannibalization as a general risk; (3) as a result of cannibalization of revenue, Paycom missed its expected Q3 2023 revenue and would have to revise its expected 2023 revenues; (4) the cannibalization issue resulted in projected 2024 year-over-year revenue growth to between 10% and 12%, well below expectations; and (5) as a result, defendants’ statements about its 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 firstname.lastname@example.org. 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.