SAN FRANCISCO, March 21, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges LivePerson, Inc. LPSN investors who suffered substantial losses to submit your losses now.
Contact An Attorney Now: [email protected]
LivePerson, Inc. (LPSN) Investigation:
The investigation focuses on LivePerson’s disclosures concerning its WildHealth business, which the company acquired in Feb. 2022.
Specifically, LivePerson recently assured investors that it “expect[ed] strong performance by WildHealth […] in the fourth quarter” and has repeatedly assured investors that its financial controls and procedures are effective.
LivePerson’s statements first came into question on Feb. 28, 2023, when the company announced it would not timely file its annual financial report. The company explained that it “requires more time to perform additional review and testing of revenue recognition with respect to a recently discontinued WildHealth program, for which Medicare reimbursement is suspended[.]”
Then, on Mar. 15, 2023, LivePerson reported dismal Q4 2022 financial results and a weak 2023 outlook. The company revealed that in Nov. 2022, WildHealth received a notice that Medicare was suspending reimbursements for services rendered under the Medicare demonstration program. LivePerson also announced it recorded a reserve for revenue associated with WildHealth services delivered under the program during Q4 2022.
On Mar. 16, 2023, LivePerson filed its annual financial report and revealed that there are material weaknesses in its internal control over financial reporting related to its WildHealth subsidiary transactions.
These events sent the price of LivePerson shares sharply lower.
“We’re focused on investors’ losses and whether LivePerson may have misled investors about whether WildHealth was providing reimbursable services under the Medicare program,” said Reed Kathrein, the Hagens Berman…