Global Payments, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Georgia on behalf of those who acquired Global Payments, Inc. (“Global Payments” or the “Company”) (NYSE: GPN) securities between October 31, 2019 through October 18, 2022 (the “Class Period”). Investors have until April 10, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Global Payments, and one of its wholly owned subsidiaries, Active Network, provides third-party registration and payment processing services to consumers signing up to participate in events.
On October 18, 2022, investors learned of these practices when the Consumer Financial Protection Bureau (“CFPB”) sued Active Network in federal court alleging that: (i) Active Network violated the Consumer Financial Protection Act of 2010 (“CFPA”) by engaging in deceptive and abusive acts and practices when it enrolled consumers and charged them for discount club memberships without their knowledge, consent, or a full understanding of the material terms of the transaction; (ii) Active Network violated the Electric Fund Transfer Act (“EFTA”) and Regulation E when it increased consumers’ membership fees without sending them written notice of the new amount and date of the new annual fee at least 10 days before initiating the new payment; and (iii) the violations of the EFTA and Regulation E also constituted violations of the CFPA. On this news, the price of Global Payments shares declined by $1.33, or approximately 1.16%, from $115.00 per share to close at $113.67 on October 18, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Active Network used deceptive and abusive acts and practices to dupe its customers into enrolling into Active Network’s own discount club; (ii) since July 2011, Active Network, and by extension, Global Payments, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; (iii) since 2011, Global Payments failed to properly monitor its subsidiary from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers; (iv) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; and (v) Global Payments’ revenues were in part the product of Active Network’s unlawful conduct and thus unsustainable.