Shareholder Investigation of GreenSky, Inc.
GreenSky, Inc. (GSKY) Accused of Failing to Disclose Company’s Shift in Merchant Business Mix
According to the complaint against the company’s officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company’s May 2018 initial public offering (“IPO”), GreenSky, Inc. (GSKY) held its IPO on May 29, 2018, generating over $1 billion in gross proceeds, based on misleading offering documents. The offering documents characterized GreenSky’s fee revenue model as “strong” and “recurring,” and painted a rosy picture of GreenSky’s growth while failing to mention the simultaneous deterioration in the company’s transaction-fee revenue. The misinformation came to light when GreenSky began reporting dismal financial results less than three months later on August 7, 2018, citing a merchant business mix shift from solar panel merchants to merchants in the elective healthcare industry and a resulting 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.