Fiserv Securities Class Action Filed Over Misleading Statements on Clover Revenue Growth and Gross Payment Volume.

Labaton Keller Sucharow LLP has filed a securities class action lawsuit against Fiserv, Inc. and certain executives, alleging that the company misled investors about the growth of its Clover platform. The lawsuit claims that Fiserv failed to disclose issues with its Payeezy platform, forced conversions to Clover, and a slowdown in new merchant business. The market began to learn the truth about Defendants' fraud on April 24, 2025, causing a significant drop in Fiserv's stock price.

Labaton Keller Sucharow LLP has filed a securities class action lawsuit against Fiserv, Inc. (NYSE: FI) and certain executives, alleging that the company misled investors about the growth of its Clover platform. The lawsuit, captioned City of Hollywood Police Officers’ Retirement System v. Fiserv, Inc., No. 25-cv-06094 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 [1].

The complaint alleges that Fiserv failed to disclose several critical issues related to its Clover platform. These include:

1. Forced Conversions: Fiserv forced merchants using its older Payeezy platform to migrate to Clover due to cost issues and other problems.
2. Unsustainable Growth: The lawsuit claims that Clover’s revenue growth and gross payment volume (GPV) were temporarily boosted by these forced conversions, masking a slowdown in new merchant business.
3. Merchant Attrition: A significant portion of former Payeezy merchants switched to competing solutions due to Clover’s high pricing, significant downtime, and compatibility issues.
4. Decelerating Growth: As a result of these merchant losses, Clover’s GPV growth slowed, and its revenue growth became unsustainable.
5. Misleading Statements: Fiserv’s positive statements about Clover’s growth strategies, competition, attrition, GPV growth, and business prospects were materially false and misleading [1].

The market began to learn the truth about Fiserv’s alleged misconduct on April 24, 2025. On that date, Fiserv reported Clover GPV growth of only 8 percent for the first quarter of 2025, a significant drop from the previous year’s rates of between 14 and 17 percent. This revelation led to a substantial decline in Fiserv’s stock price, dropping 18.5 percent to close at $176.90 per share on April 24, 2025 [1].

Further revelations on May 15, 2025, and July 23, 2025, continued to impact Fiserv’s stock price. On May 15, 2025, the company disclosed that GPV growth deceleration would continue throughout 2025, causing the stock to drop 16.2 percent to close at $159.13 per share. On July 23, 2025, Fiserv lowered its full-year organic growth guidance and confirmed a deceleration in quarterly organic revenue, leading to a 13.9 percent drop in stock price to close at $143.00 per share [1].

Investors who purchased or acquired Fiserv common stock during the class period (July 24, 2024, to July 22, 2025) may be eligible to join the class action. Lead Plaintiff motion papers must be filed no later than September 22, 2025. The Lead Plaintiff is a court-appointed representative for absent members of the class. For more information, contact Connor C. Boehme, Esq. of Labaton at (212) 907-0780 or via email at cboehme@labaton.com [1].

References:
[1] https://www.businesswire.com/news/home/20250724563353/en/Labaton-Keller-Sucharow-LLP-Files-Securities-Class-Action-Against-Fiserv-Inc.-and-Certain-of-Its-Executives