Pomerantz Appointed Lead Counsel in Paysign Securities Litigation

On December 2, 2020, U.S. District Judge Gloria M. Navarro of the District of Nevada appointed Pomerantz LLP as Lead Counsel on behalf of Lead Plaintiffs Johann Francisconi and Raheel Shahzad (collectively, the “Paysign Investor Group”) in In re Paysign, Inc. Securities Litigation, 20-cv-553 (D. Nev.), a securities litigation being pursued on behalf of a class of defrauded investors concerning allegations that Paysign, Inc. (“Paysign” or the “Company”) failed to disclose that the Company had ineffective controls governing its financial reporting and information technology.

Paysign is a provider of prepaid debit card programs and processing services to corporations, government agencies, universities and other organizations. The Company changed its name from 3PEA International Inc. to Paysign, Inc. on April 23, 2019.

The complaint alleges that, between March 12, 2019 and March 15, 2020, the defendants failed to disclose to investors that: (i) Paysign’s internal control over financial reporting was not effective; (ii) Paysign’s information technology (“IT”) general controls were not effective.

On March 16, 2020, Paysign announced that it was unable to timely file its 2019 annual report because it needed additional time to complete a financial audit. The Company also reported that “in the course of completing its assessment of internal controls over financial reporting for 2019 and the company’s initial year of compliance with Sarbanes-Oxley 404(b), management identified material weaknesses related to (i) assessment of internal controls over financial reporting and (ii) information technology general controls.”

On this news, Paysign’s share price fell $0.93 per share, or approximately 17%, to close at $4.59 per share on March 16, 2020.