Shareholder Investigation of GreenSky, Inc.
GreenSky, Inc. (GSKY) Accused of Failing to Disclose Company’s Shift in Merchant Business Mix
According to the complaint, GreenSky held its IPO on May 29, 2018, and generated over $1 billion in gross proceeds based on misleading offering documents. As a result of moving away from its solar power business and into the elective healthcare market, GreenSky’s transaction-fee revenue significantly declined and will continue to decline absent a change in focus back to its solar power business. However, the offering documents touted GreenSky’s growth and financial performance and did not disclose that GreenSky was transitioning to a less profitable market. Less than three months later, GreenSky reported dismal financial results, citing its merchant business mix shift and consequently drastically reduced transaction-fee rate. When GreenSky again reported disappointing results and lowered its guidance, GreenSky’s stock fell to $9.28 per share on November 6, 2018—nearly 60% below the company’s $23.00 IPO price—and has yet to recover.
GreenSky, Inc. (GSKY) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.