Kirby McInerney LLP | Financial Litigation Law Firm | <h3 >Affirm Holdings, Inc. Investigation</h3 >
This links to the home page
Cases
PRACTICE AREAS

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.
 
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. 
 

Affirm Holdings, Inc. Investor Contact Form