Fiserv(US:FI) GlobeNewswire News Room·2025-07-25 17:31Core Viewpoint - A securities class action lawsuit has been filed against Fiserv, Inc. for allegedly misleading investors regarding its Clover platform and the impact of forced migrations from its Payeezy platform [1][2]. Group 1: Allegations of Misleading Information - The lawsuit claims that Fiserv did not disclose issues with its Payeezy platform, which led to forced migrations to Clover, artificially inflating Clover's revenue and GPV growth [2]. - It is alleged that the forced conversions resulted in a significant number of former Payeezy merchants switching to competitors due to Clover's high pricing and inadequate customer service [2]. - The complaint states that Fiserv's positive statements about Clover's growth were materially false and misleading, as they concealed a slowdown in new merchant business and GPV growth [2]. Group 2: Financial Performance and Market Reaction - On April 24, 2025, Fiserv reported Clover GPV growth of only 8% for Q1 2025, a significant decline from 14%-17% in 2024, leading to an 18.5% drop in stock price [3]. - The company attributed the slowdown in GPV growth to lower transaction volumes from Payeezy merchants who migrated to Clover, while Clover's revenue growth remained steady at 27% [3]. - Analysts expressed concerns about the sustainability of Clover's growth, noting the widening gap between revenue and GPV growth, which was the largest in their model's history [3]. Group 3: Continued Decline and Investor Impact - On May 15, 2025, Fiserv disclosed that GPV growth deceleration would persist throughout 2025, resulting in a further 16.2% drop in stock price [4]. - Analysts highlighted the intensifying competitive dynamics and significant customer churn from Clover, indicating ongoing challenges for the company [4]. - The lawsuit claims that investors have suffered significant damages due to the decline in the market value of Fiserv's common stock as a result of these alleged misrepresentations [5].