NEWTOWN,
Pa., Dec. 18, 2024 /PRNewswire/ -- Edelson
Lechtzin LLP is investigating potential violations of the
federal securities laws involving Sezzle, Inc. (NASDAQ: SEZL)
resulting from allegations of providing potentially misleading
business information to the investing public.
If you have non-public information that could assist in the
Sezzle Investigation or if you are a Sezzle investor who suffered a
loss and would like to learn more, you can provide your
information HERE.
You can also contact attorney Eric
Lechtzin of Edelson Lechtzin LLP by calling 844-563-5550
ext. 1 or e-mailing
elechtzin@edelson-law.com.
THE COMPANY: Sezzle is a financial technology company
located in Minneapolis, operating
in the U.S. and Canada. It
provides a payment platform that allows shoppers to make purchases
with interest-free installment plans at participating online
retailers.
THE ALLEGED
WRONGDOING: On December 18, 2024,
Hindenburg Research released 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 expresses
concerns about Sezzle's sustainability, highlighting risky
financial practices, a declining customer and merchant base,
insider stock sales, and questionable subscription practices.
The Company borrows at high interest rates to offer loans to
high-risk consumers, resulting in increased credit losses. Since
2021, the number of active merchants on its platform has decreased
by 51%, and its customer base has dropped by 20%. Meanwhile,
Company insiders have sold $71
million in stock, and the CEO has pledged $542 million in shares as collateral for a margin
loan, representing ~30% of the Company's total shares.
While subscriptions now comprise a larger portion of revenue,
customer complaints indicate unauthorized enrollments. With nearly
1,000 complaints and a low 1.1-star rating from the Better Business
Bureau (BBB), Hindenburg Research questions Sezzle's long-term
viability.
ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a
national class action law firm with offices in Pennsylvania and California. In addition to cases involving
securities and investment fraud, our lawyers focus on class and collective
litigation in cases alleging violations of the federal antitrust
laws, employee benefit plans under ERISA, wage theft and unpaid
overtime, consumer fraud, and catastrophic injuries.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
This press release may be considered Attorney Advertising in
some jurisdictions. No class has been certified in this case, so
you are not represented by counsel unless you retain one. You may
select counsel of your choice. You may also remain an absent class
member and do nothing at this point. Your ability to share in any
potential future recovery is not dependent upon serving as lead
plaintiff.
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SOURCE Edelson Lechtzin LLP