Core Viewpoint - Fiserv, Inc. has reached an agreement to settle and fully resolve issues related to a qui tam action in the U.S. District Court for the Eastern District of Missouri concerning its historical operations of an output solution [1] Group 1 - The case is titled "United States ex rel. Deborah Lynn Getchman v. Fiserv Solutions, LLC and Fiserv, Inc." [1] - The case number is 4:21-cv-00951 (JMB) [1]

Core Viewpoint - Hagens Berman is investigating Fiserv, Inc. following reports that the company will not meet financial forecasts set by its former CEO, Frank Bisignano, amid demands for information from Senate Democrats [1] Group 1 - The investigation is prompted by a report from The Wall Street Journal on November 7, 2025, regarding Fiserv's financial performance [1] - Senate Democrats are seeking information related to the company's former CEO and Chairman, Frank Bisignano, in light of the financial forecast shortfall [1] - Hagens Berman is encouraging Fiserv investors who have experienced significant losses to come forward and report their losses [1]

Core Insights - Ariel Investments' "Ariel Focus Fund" reported a significant increase of 20.76% in the third quarter, outperforming the Russell 1000 Value Index and the S&P 500 Index [1] - The fund's performance was driven by the Federal Reserve's first rate cut, strong corporate earnings growth, and broadening market participation [1] Company Analysis: Fiserv, Inc. (NYSE:FI) - Fiserv, Inc. is a leading financial technology company providing payment and fintech services, with a market capitalization of $34.315 billion as of November 12, 2025 [2] - The stock experienced a one-month return of -46.84% and a 52-week decline of 69.80% [2] - Ariel Focus Fund views Fiserv as a best-in-class financial technology business with strong scale and cross-selling capabilities, despite recent stock pressure due to concerns over Clover volumes [3] - The deceleration in Clover volumes is attributed to one-time items, with expectations for growth to accelerate later in the year [3] Hedge Fund Interest - Fiserv, Inc. was held by 94 hedge fund portfolios at the end of the second quarter, an increase from 72 in the previous quarter [4] - Despite the potential of Fiserv, the company believes certain AI stocks may offer greater upside potential and less downside risk [4]

Core Viewpoint - Fiserv is facing a shareholder lawsuit alleging that it misled investors regarding its revenue growth potential, particularly following a revision of its organic revenue growth guidance for 2025 [1][2]. Group 1: Lawsuit Details - A lawsuit was filed in a Wisconsin federal court claiming that Fiserv's earnings forecasts were based on faulty data, leading investors to purchase stock at "artificially inflated prices" [2]. - The lawsuit centers on Fiserv's July revision of its revenue growth guidance, which was initially set between 10% and 12% for 2025 but was later adjusted to just 10% [2][3]. - The complaint states that Fiserv's previous guidance was based on assumptions that were "objectively difficult to achieve," as admitted by the company in October [3]. Group 2: Company Response and Leadership Changes - Fiserv attributed the guidance revision to delays in initiatives and projects but maintained that the initial guidance was fundamentally sound [3]. - Following a disappointing earnings call, Fiserv underwent a C-suite shuffle, replacing former CFO Robert Hau with Paul Todd [4]. - A company spokesperson stated that Fiserv disagrees with the claims and will vigorously defend itself in the lawsuit [4]. Group 3: Stock Performance and Legal Representation - Fiserv's stock experienced a significant decline, dropping about 60% this year, particularly after the disappointing earnings report on October 29 [6]. - The lawsuit was filed by law firms Hagens Berman, Gainey McKenna & Egleston, and Scott and Scott, which are soliciting clients who purchased shares between July and October [5][6].

Core Viewpoint - Senate Democrats are investigating Fiserv, Inc. due to concerns over the company's financial forecasts and the role of its former CEO Frank Bisignano, following a significant drop in share price after disappointing Q3 2025 results [1][2]. Financial Performance - Fiserv's Q3 2025 results were described as "abysmal," leading to a 47% decline in share price on October 29, 2025, which resulted in a loss of $32 billion in shareholder value in a single day [2][7]. - The company revised its organic revenue growth expectations down to 3.5%-4% from a previously higher forecast, and adjusted its EPS outlook to $8.50-$8.60 [5][6]. Legal and Regulatory Actions - A securities fraud class action has been filed against Fiserv, focusing on the accuracy of the company's statements regarding its business and growth prospects during the class period from July 23, 2025, to October 29, 2025 [3][4]. - Lawmakers are seeking information on Bisignano's involvement in financial forecasting and whether he misled investors about the company's financial health [2][6]. Management Changes - Following the poor financial results, Fiserv announced a leadership shakeup, including the departure of its CFO and changes to the board of directors, effective January 1, 2026 [5][6]. Investor Sentiment - The market reacted negatively to Fiserv's revised guidance and management's admission of overly optimistic assumptions, raising questions about the company's transparency and management effectiveness [6][7].

Company Performance - Fiserv's CEO attributed the earnings disappointment to a series of operational shortcomings [1] - The earnings disappointment led to a record rout in the payments giant's stock last month [1]

Summary of Fiserv Conference Call Company Overview - **Company**: Fiserv - **Key Executives**: Mike Lyons (CEO), Paul Todd (CFO) [1][2] Industry Context - **Industry**: Financial Services and Payment Processing - **Market Focus**: Emphasis on banking, digital payments, and merchant services [1][2] Core Points and Arguments Guidance Reset and Strategic Direction - Fiserv reset its guidance due to overly optimistic assumptions and unsustainable short-term initiatives [2][3] - A thorough analysis identified four main drivers for the guidance adjustments: 1. Cyclical growth in Argentina contributing to organic growth [3][4] 2. Business performance not meeting expectations [4] 3. High ROI capital and operational expenditures necessary for long-term value [4] 4. Need for balance between short-term and long-term initiatives [4] Financial Performance - Organic growth forecast revised to 3.5% to 4% from an original 10% to 12% [12][13] - Argentina's contribution to growth decreased significantly, impacting overall performance [13][14] - Fiserv's structural growth capabilities are positioned for mid-single-digit growth with mid-30% margins [6][5] Argentina Operations - Argentina's business remains strong, with a focus on merchant services and anticipation revenues [14][18] - Structural changes in Argentina's economy have affected growth reporting but not the underlying business health [17][22] Product and Service Development - Clover platform remains a key focus, with plans for significant investment and enhancements [30][31] - Emphasis on vertical and horizontal expansion, including partnerships and international growth [32][34] - Development of Commerce Hub as a global omni-channel platform for merchants [46][48] Financial Solutions Segment - Issuing, banking, and digital payments are key areas, with a focus on modernization and customer experience [50][51] - Core banking transition is ongoing, with a shift from multiple platforms to a unified system [67][70] Leadership and Organizational Changes - New leadership team aims to enhance client experience and product offerings [82][83] - Focus on retaining talent and improving internal communication during the transition [83][84] Additional Important Insights - The company is exploring divestitures of non-core businesses to optimize capital allocation [78][79] - Bank M&A activity is increasing, but Fiserv does not expect significant impacts on its core business [75][76] - The company is committed to delivering value to customers and shareholders through disciplined investment strategies [78][79] Conclusion - Fiserv is navigating a challenging environment with a focus on long-term growth, product development, and strategic adjustments to its operations and guidance. The leadership transition is aimed at revitalizing the company and enhancing its market position.

Core Viewpoint - Scott+Scott Attorneys at Law LLP is investigating Fiserv, Inc. for potentially issuing misleading statements and failing to disclose material information to investors, which may violate federal securities laws [1][3]. Company Performance - Fiserv reported third-quarter earnings on October 29, 2025, with adjusted earnings of $2.04 per share, which fell short of analysts' expectations of $2.64 per share [3]. - The company revised its 2025 adjusted earnings forecast to a range of $8.50 to $8.60 per share, down from the previous forecast of $10.15 to $10.30 per share made in July 2025 [3]. - Following the earnings report, Fiserv's share price dropped significantly, reaching as low as $66.58 per share, a decline of approximately 47% from $126.17 per share on October 28, 2025, amid heavy trading volume [3]. Legal Investigation - The investigation by Scott+Scott focuses on whether Fiserv or its officers and directors misled investors or failed to disclose critical information [1]. - The firm specializes in representing clients harmed by securities law violations and has a strong track record in achieving significant settlements [5].

Core Points - A securities fraud class action lawsuit has been filed against Fiserv, Inc. for alleged violations of the Securities Exchange Act of 1934 [2] - The lawsuit claims that Fiserv and certain senior officers made misrepresentations regarding the Company's initiatives and projects [2] - Investors who purchased Fiserv securities between July 23, 2025, and October 29, 2025, are eligible to participate in the class action [2] Legal Proceedings - The deadline to file as a lead plaintiff in the class action is January 5, 2026 [3] - A lead plaintiff acts on behalf of other class members in directing the litigation, but participation in any recovery does not require serving as lead plaintiff [3] - All legal representation is on a contingency fee basis, meaning shareholders incur no fees or expenses [3] Firm Background - Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has represented large public and private pension funds [4] - The firm has been recognized multiple times in The National Law Journal's "Plaintiffs' Hot List" and has been listed in The Legal 500 for sixteen consecutive years [4]

Core Insights - The commentary highlights that all sectors in the Russell 1000 Value index experienced positive performance, with the exception of Consumer Staples [3]. Sector Performance - The Consumer Staples sector was the only sector that did not perform positively in the Russell 1000 Value index [3].