The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Florida on behalf of those who acquired Fidelity National Information Services, Inc. (“Fidelity National” or the “Company”) (NASDAQ: FIS) securities during the period from November 3, 2021 through January 31, 2023 (the “Class Period”). Investors have until May 5, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Fidelity National is a payment services provider.
On August 4, 2022, Fidelity National filed a Current Report on Form 8-K with the SEC announcing the Company’s second quarter 2022 results. The 8- K included an announcement that James Woodall planned to “step down” as Fidelity National’s Corporate Executive Vice President and CFO effective November 4, 2022, and that Erik Hoag would be replacing him on that same day. On this news, the price of Fidelity National shares declined by $7.56 per share, or approximately 7.26%, from $104.13 per share to close at $96.57 on August 4, 2022.
On November 3, 2022, Fidelity National announced disappointing results for the third quarter of 2022. During the earnings conference call, Gary Norcross, the CEO and, later, the Executive Chairman of the Board of Directors, announced that profit margins in the Merchant Solutions business “saw continued pressure in the quarter” resulting “in an overall adjusted EBITDA margin contracting 150 points year-on-year.” Norcross explained “we are not pleased with the profitability performance of the business and are taking actions to address them.” On this news, the price of Fidelity National shares declined by $22.29 per share, or approximately 28.05%, from $79.47 per share to close at $57.18 on November 3, 2022.
On February 13, 2023, Fidelity National filed a Current Report on Form 8-K with the SEC announcing the Company’s fourth quarter and full year 2022 results. The Form 8-K included a press release that stunned investors by disclosing that the Company would be getting rid of its Merchants Solutions business—namely Worldpay, a payments company Fidellity National had acquired on July 31, 2019—and “recorded a non-cash goodwill impairment charge of $17.6 billion related to Merchant Solutions reporting unit in the quarter.” This massive write-down constituted more than 40% of Fidelity National’s purchase price for Worldpay just a few years earlier. On this news, the price of Fidelity National shares declined by $9.43 per share, or approximately 12.50%, from $75.43 per share to close at $66.00 per share on February 13, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as 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; and (3) the increases in revenue synergies were not driven by the Worldpay integration.
If you purchased or otherwise acquired Fidelity securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.