Current LivePerson, Inc. (NASDAQ: LPSN) shareholders who have held shares of the Company’s stock since at least May 9, 2022, have standing to seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.

LivePerson, Inc. delivers mobile and online messaging solutions through Conversational Artificial Intelligence (“AI”). Conversational AI operates through the Business and Consumer segments. In February 2022 the Company acquired its subsidiary WildHealth.

An underlying securities fraud class action complaint alleges that throughout the period from May 9, 2022 and February 28, 2024, LivePerson, via certain of its officers and directors, made materially false and/or misleading statements and purposefully did not provide specificity on key performance indicators and revenue segmentation, and specifically the non-core components of the Company’s profit and loss statement, which included WildHealth.  Defendants’ lack of transparency purposefully obfuscated that LivePerson had incurred substantial losses from its WildHealth venture.

While Defendants consistently told investors that WildHealth exhibited strong growth, even promising that WildHealth’s core revenue would double in 2023. In reality, as LivePerson’s financial condition deteriorated, it instituted capital cuts and layoffs at WildHealth that significantly constrained its ability to grow.

Then, on February 28, 2024, Defendants revealed for the first time that the revenue outlook for 2024 was $100 million below expectations as a result of customer attrition issues that had worsened over the prior twelve months. The Company further revealed that WildHealth had not in fact performed as promised, that its contribution to EBITDA was negative and that LivePerson was actively marketing a sale of the business. Defendants also revealed that despite their promises of transparency regarding non-core revenue in March 2023, they had not actually provided “specificity on key performance indicators and revenue segmentation.”

Moreover, as LivePerson’s finances worsened, the risks associated with its $517.5 million in convertible senior notes that LivePerson had issued in December 2020 with a maturity date in 2026 increased substantially. While the Company had multiple opportunities to refinance the 2026 Notes in 2022 and 2023, Defendant Collins recklessly instructed the Board not to refinance the 2026 Notes until the stock price increased.  The risks now associated with convertible notes maturing in 2026 became clear as investors realized the Company would not have sufficient funds to repurchase the debt and was not in a position to refinance the debt with favorable terms or without substantial dilution.

It is alleged that as a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities.

If you have held LivePerson shares since prior to May 9, 2022, and would like to learn more at no cost to you, please contact Joshua Grabar at jgrabar@grabarlaw.com or Mia Heller at mheller@grabarlaw.com, or call us at 267-507-6085.