Marqeta faces serious securities fraud lawsuit that could impact investors
- A securities class action lawsuit has been filed against Marqeta, Inc. by Berger Montague PC.
- The lawsuit claims Marqeta misled investors about regulatory challenges which resulted in a significant drop in stock price.
- Investors have a deadline of February 7, 2025, to join as lead plaintiffs in the ongoing legal matter.
On January 8, 2025, Berger Montague PC, a law firm based in Philadelphia, announced that a securities class action lawsuit was filed against Marqeta, Inc., a company headquartered in Oakland, California. The lawsuit pertains to investors who purchased Marqeta securities during the specified Class Period, which spans from May 7, 2024, to November 4, 2024. Allegations in the lawsuit suggest that Marqeta and its executives breached federal securities laws by making misleading statements about the company's business outlook and regulatory challenges. The complaint arose after Marqeta released its third-quarter financial results on November 4, 2024, which included a substantial downward revision of its guidance for the fourth quarter of 2024. This triggered a sharp decline in the company’s stock price, which fell by more than 42%, dropping from $5.95 to $3.42 per share in just one day. The lawsuit claims that if investors had been adequately informed about the regulatory hurdles and business outlook, they would not have suffered such significant losses. Investors who acquired Marqeta securities within the Class Period have until February 7, 2025, to apply for lead plaintiff status in the lawsuit. Acting as a lead plaintiff, an investor represents all class members in directing the litigation, selecting counsel, and ensuring their interests are adequately addressed within the class action process. Berger Montague, which has a long history in securities class action litigation, has represented both institutional and individual investors in similar cases. The class action lawsuit highlights the legal complexities involved when a company allegedly misleads investors. If plaintiffs can demonstrate that Marqeta made false or misleading statements knowingly or recklessly, they could potentially receive a financial recovery for their losses. The outcome of the lawsuit will depend on legal proceedings and the evidence presented in court. Investors are left in suspense as they await developments in the case and how it may ultimately impact Marqeta’s future.