Securities Class Action Lawsuit Alleges Fiserv Misled Investors

Core Viewpoint - A securities class action lawsuit has been filed against Fiserv by Labaton Keller Sucharow, alleging that the company misled investors regarding its Clover payment gateway product and its overall business performance [1][2]. Group 1: Allegations of Misleading Information - The lawsuit claims that from July 24, 2024, to July 22, 2025, Fiserv misled investors by not disclosing that it forced merchants on its older Payeezy platform to migrate to Clover, which artificially inflated Clover's revenue growth and gross payment volume (GPV) while masking a slowdown in new merchant business [3]. - It is alleged that a significant number of former Payeezy merchants switched to competitors shortly after the forced conversions to Clover, indicating potential customer dissatisfaction [3]. - The lawsuit also states that Fiserv failed to disclose that Clover's GPV growth was significantly slowing and that its revenue growth was unsustainable, rendering the company's statements about Clover's business prospects materially false and misleading [4]. Group 2: Market Reaction and Stock Performance - The market began to recognize the alleged fraud on April 24, 2025, when Fiserv reported Clover GPV growth of only 8% for Q1 2025, a significant decline from the 14% to 17% growth rates in 2024, leading to an 18.5% drop in Fiserv's stock price to $176.90 per share [5]. - Following this, the stock further declined to $159.13 on May 15, 2025, after Fiserv indicated that the slowdown in GPV growth would persist throughout 2025, and dropped to $143.00 per share on July 23, 2025, when the company lowered its full-year organic growth guidance [5][6]. Group 3: Class Action Details - The lawsuit has been filed on behalf of the City of Hollywood Police Officers' Retirement System, and it includes all individuals who purchased or acquired Fiserv common stock during the class period and suffered damages [6]. - Fiserv has recently adjusted its guidance for overall 2025 organic revenue growth rates to 10%, which is at the lower end of its previously targeted range of 10% to 12% [6].