Affirm Holdings, Inc. Investigation
The law firm of Kirby McInerney LLP is investigating potential claims against Affirm Holdings, Inc. (“Affirm” or the “Company”) (NASDAQ: AFRM). The investigation concerns whether Affirm has violated the federal securities laws and/or engaged in other unlawful business practices.
Affirm, headquartered in San Francisco, California, operates a platform for digital and mobile-first commerce in the United States and Canada. Affirm’s platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
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.