Throughout 2023, I have noted examples of securities class action lawsuit filings involving companies whose operations or financial results were undercut by adverse macroeconomic conditions. The specific adverse economic conditions involved have included, for example, rising interest rates, heightened economic inflation, and supply chain and labor supply disruptions.
In yet another example of this phenomenon, a plaintiff shareholder has this week sued the software company Expensify in a lawsuit alleging not that a single adverse macroeconomic factor undercut the company’s results, but rather that adverse macroeconomic conditions in general hurt the company’s financial results and caused it to fall short of the growth projections it made in its IPO. As discussed below, the overall macroeconomic conditions that hurt this company and that were such a factor in securities class action litigation frequency overall in 2023 likely will continue as we head into 2024. There also is a D&O practitioner’s pointer below for those willing to read all the way to the end of this post. A copy of the November 2, 2023, complaint filed against the company can be found here.Continue Reading Securities Suit Alleges “Macroeconomic Headwinds” Undercut IPO Company