Johnson Fistel has Commenced an Investigation on Behalf of Sezzle Inc. (SEZL) Shareholders
Johnson Fistel, LLP is investigating Sezzle Inc. (NASDAQ: SEZL) for possible non-compliance with federal securities laws and Delaware corporate law.
What if I purchased Sezzle securities? If you purchased securities and suffered losses on your investment, join our investigation now:
Or for more information, contact Jim Baker at jimb@johnsonfistel.com or (619) 814-4471. There is no cost or obligation to you.
Sezzle is a technology payments company which offers financing to customers and merchants as a “Buy Now, Pay Later” service. Approximately 52% of Sezzle’s revenue for the third quarter of fiscal year 2024 came from “transaction income,” which includes, among other things, merchant processing fees and consumer fees. In the same period, Sezzle derived 33% of its revenue from its two “subscription” offerings.
What is Johnson Fistel Investigating? On December 18, 2024, Hindenburg Research LLC (“Hindenburg”) published a report titled “Sezzle: A Failing ‘Buy Now, Pay Later’ Platform Playing Short Term Tricks As Insiders Cash Out Via Stock Sales And Margin Loans,” (the “Hindenburg Report”). The Hindenburg Report alleges Sezzle is currently struggling as “Sezzle is borrowing expensive capital to make extremely risky loans through a struggling platform that is rapidly losing customers and merchants.” At the same time, the Hindenburg Report alleges Sezzle’s insiders are cashing out by selling over $71 million in stock. The Hindenburg Report concludes Sezzle is using short term strategies to boost the company’s revenue numbers to give the company’s insiders the opportunity to dump their stock at inflated prices.
In response to the Hindenburg Research report, Sezzle’s shares plunged more than 28%, to $242.17, from $315.18, its close on December 17, 2024.
What if I have relevant nonpublic information? Individuals with nonpublic information regarding the company should consider whether to assist our investigation or take advantage of the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or jimb@johnsonfistel.com.