Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM) on behalf of Affirm stockholders. Our investigation concerns whether Affirm has violated the federal securities laws and/or engaged in other unlawful business practices.
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On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it has launched an inquiry into the payment service offered by Affirm known as “buy-now, pay-later” (“BNPL”). The CFPB issued an order to Affirm, along with four other companies offering BNPL, seeking information about Affirm’s facilitation of excessive consumer debt, regulatory arbitrage and data harvesting. The CFPB said it is concerned about “accumulating debt, regulatory arbitrage, and data harvesting,” and is seeking data on the risks and benefits of the products. In a statement addressing BNPL services, CFPB Director Rohit Chopra said, “[t]he consumer gets the product immediately but gets the debt immediately too.”
On this news, Affirm’s stock price declined by $11.74 per share, or approximately 10.6%, from $110.98 per share to close at $99.24 per share on December 16, 2021.
Then, on, February 10, 2022, Affirm announced details of the Company’s financial performance, including that its sales rose 77%, in the second quarter of fiscal year 2022 (ended December 31, 2021), suggesting revenue would beat expectations. Later that day, the Company deleted the prior tweet and announced its second quarter 2022 financial results, including a net loss of $159.7 million that missed analyst estimates of $100.3 million on average.
On this news, Affirm’s stock price declined by $16.00 per share, or approximately 21.4%, from $74.68 per share to close at $58.68 per share on February 10, 2022.
If you purchased or otherwise acquired Affirm shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
