Lightspeed Commerce ($LSPD) CAD$11M Investor Settlement

$11,000,000

Cash Settlement

500-06-001164-215

Case number

03/07/2019

Class period Start

11/17/2021

Class period End

03/04/2026

Claim deadline

Lightspeed Commerce ($LSPD) has agreed to settle for CAD $11M to resolve claims that it misled investors about its growth metrics, customer base, and competitive positioning in the e-commerce and point-of-sale software market.

Outline:

Lightspeed Commerce reported strong revenue growth and an increase in merchant numbers in 2021. Investors later alleged that the company overstated those metrics and failed to disclose competitive pressures accurately. After a short-seller report challenged the company’s public statements, the stock fell sharply. Investors filed suit, and Lightspeed later agreed to a CAD $11 million settlement.

Timeline:
September 8, 2021: Lightspeed reported strong revenue growth and an increase in merchant numbers.
September 29, 2021: A short-seller report alleged Lightspeed had exaggerated its growth and customer figures, and the stock fell sharply.
November 4, 2021–Early 2022: Earnings updates and market commentary increased investor concerns and contributed to further declines.
October 2021: Investors filed a Quebec securities class action alleging false or misleading statements.
September 2025: Parties agreed to settle
Background:

Lightspeed Commerce is a Montreal-based software company that provides cloud-based commerce, point-of-sale, and payment processing solutions to small and mid-sized businesses. In 2021, the company promoted its expansion by highlighting revenue growth, customer gains, and competitive strength.

In September 2021, a short-seller report alleged that Lightspeed had inflated key business metrics and misrepresented the strength of its market position. The report also challenged the company’s statements about customer-related metrics and competitive pressures.

Following the report, Lightspeed’s share price declined sharply. Subsequent earnings updates and market commentary added to investor concerns about whether the company’s earlier statements had accurately reflected the condition of its business.

Investors later filed a Quebec securities class action alleging that Lightspeed’s public disclosures were false or misleading. Lightspeed denied wrongdoing but later agreed to a CAD $11 million settlement to resolve the claims.

What Can Investors Expect Now?

Lightspeed Commerce agreed to a CAD $11 million settlement with investors to resolve claims that it misled them about its growth metrics, customer base, and competitive positioning.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

Canadian Securities Class Action

Case Status

Distribution Preparation

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

10/01/2021

Attorneys

Kalloghlian Myers LLP; Strosberg Sasso Sutts LLP

Trades matching type

FIFO

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