Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Fiserv, Inc. (FI)
NEW YORK, July 25, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the securities of Fiserv, Inc. (“Fiserv” or the “Company”) (NYSE: FI) between July 24, 2024 and July 22, 2025, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants misled investors by failing to disclose that: (a) due to cost issues and other problems with its Payeezy platform, Fiserv forced Payeezy merchants to migrate to its Clover platform; (b) Clover’s revenue growth and GPV growth were temporarily and unsustainably boosted by these forced conversions, which concealed a slowdown in new merchant business; (c) shortly after these conversions, a significant portion of former Payeezy merchants switched to competing solutions due to Clover’s high pricing, inadequate customer service, and other issues; (d) as a result of these merchant losses, Clover’s GPV growth was significantly slowing, and its revenue growth was unsustainable; and (e) based on the foregoing, Fiserv’s positive Class Period statements about Clover’s growth strategies, competition, attrition, GPV growth, and business prospects were materially false and misleading.
The Complaint also alleges that on April 24, 2025, Fiserv shocked investors by reporting Clover GPV growth of only 8% for the first quarter of 2025, a material stepdown from 2024 GPV rates of between 14% and 17%. The Complaint further alleges that the Company attributed this slowing growth to lower 2025 transaction volumes from Payeezy merchants who had converted to Clover. The Complaint continues to allege that despite this steep drop-off in GPV growth, Clover’s first quarter 2025 revenue growth remained relatively steady at 27%. The Complaint alleges that Defendants attributed the spread between Clover revenue growth (27%) and GPV growth (8%) to strong Clover hardware sales and VAS penetration from existing merchants. The Complaint alleges, however, that Defendants continued to mislead investors by failing to disclose that this spread was largely due to the loss of transaction volumes from former Payeezy merchants who left Clover for competing solutions. The Complaint alleges that analysts at J.P.Morgan noted that this was “the widest spread between revenue and volume in our model’s history, raising concerns about sustainability of premium growth.” According to the Complaint, on this news, Fiserv stock dropped 18.5 percent.
The Complaint further alleges that, on May 15, 2025, Fiserv disappointed investors by disclosing that GPV growth deceleration would continue throughout 2025. The Complaint alleges that analysts were surprised at this trend, with Bernstein Research highlighting the “intensifying competitive dynamics” and Goldman Sachs noting the “very significant churn” of Clover customers from back book conversions. According to the Complaint, on this news, Fiserv stock dropped an additional 16.2 percent, closing at $159.13 on May 15, 2025.
The Complaint alleges that as a result of Defendants’ wrongful acts and omissions, and the significant declines in the market value of the Company’s common stock, securities investors have suffered significant damages.
Investors who purchased or otherwise acquired shares of Fiserv should contact the Firm prior to the September 22, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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