According to the Complaint, Global Payments, Inc. is a leading payments technology company that delivers innovative software and services to approximately 4 million merchant locations and more than 1,350 financial institutions across more than 170 countries throughout North America, Europe, Asia-Pacific and Latin America. Active Network, LLC is a wholly owned subsidiary of Global Payments, Inc. and was acquired by the Company in 2017 for a reported $1.2 billion.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, the Complaint alleges Defendants made false and misleading statements and failed to disclose that: (a) Active Network used deceptive and abusive acts and practices to dupe its customers into enrolling in Active Network’s discount club; (b) since July 2011, Active Network, and by extension, Global Payments, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; (c) since 2011, Global Payments failed to properly monitor its subsidiary from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers; (d) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; (e) Global Payments’ revenues were in part the product of Active Network’s unlawful conduct and thus unsustainable; and (f) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 11, 2023, the Court issued an Order appointing Co-Lead Plaintiffs and Co-Lead Counsel. Co-Lead Plaintiffs filed an amended Complaint on June 26. Defendants filed a Motion to Dismiss the amended Complaint on August 17.
On March 29, 2024, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
On June 10, 2024, the parties entered into a Stipulation and Agreement of Settlement.
