NEW YORK, Dec. 31, 2024 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP is investigating potential claims against Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ:SEZL). The investigation concerns whether Sezzle and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
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On December 18, Hindenburg Research LLC 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 report alleges that Sezzle relies on a high-interest line of credit to fund risky loans for borrowers with poor credit who cannot access traditional financing options like credit cards. Hindenburg also highlights a significant decline in Sezzle’s active merchant partnerships and a 20% drop in its customer base since 2021, raising serious doubts about the Company’s long-term growth prospects. Furthermore, the report points to insider activity as evidence of potential issues, noting that insiders sold $71 million worth of stock this year, including a major early investor who reduced their stake by 87%.
On this news, the price of Sezzle shares declined by $73.01 per share, or approximately 23.2%, from $315.18 per share on December 17, 2024, to close at $242.17 per share on December 18, 2024.
If you purchased or otherwise acquired Sezzle securities, have information, or would like to learn more about this investigation, contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out the form below to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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