If you're affected by the Shift4 Payments lawsuit, it's essential to understand the current lawsuit information and settlement status.
The lawsuit, filed in 2020, alleges that Shift4 Payments engaged in deceptive business practices.
Consumers who were affected by these practices may be eligible for a settlement.
The settlement amount is not publicly disclosed, but it's reported to be substantial.
If you're a consumer who used Shift4 Payments services and experienced issues, you may be able to file a claim.
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SEC Settles Charges
The SEC settled charges against Shift4 Payments, Inc. after failing to disclose related-person transactions.
The SEC charged Shift4 with violating Sections 13(a) and 14(a) of the Securities Exchange Act.
Shift4, a payment processing company, was required to disclose transactions that met certain requirements under Item 404(a) of Reg S-K.
These requirements include disclosing the related person's name, nature of the relationship, interest in the transaction, approximate dollar amount, and any other material information.
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For example, if a company employs a director's child at a yearly salary of $150,000, this transaction must be disclosed.
The SEC alleged Shift4 failed to disclose two transactions that met the requirements, including employing a sibling of an executive officer and director who received $1.1 million in compensation between 2020 and 2022.
Another sibling received over $1 million as "residual commissions while acting as an independent sales agent" between 2020 and 2022.
Shift4 did not disclose these transactions in its Form 10-K or proxy statements.
As a result, the company agreed to pay a civil money penalty of $750,000.
Here are the key takeaways from the SEC's settlement with Shift4:
- The SEC charged Shift4 with violating Sections 13(a) and 14(a) of the Securities Exchange Act.
- Shift4 failed to disclose two related-person transactions that met the requirements under Item 404(a) of Reg S-K.
- The company agreed to pay a civil money penalty of $750,000.
Created: Apr 19, 2023
Shift4 Payments, Inc. was created on April 19, 2023.
Rosen Law Firm, a global investor rights law firm, is investigating potential securities claims on behalf of Shift4 Payments, Inc. shareholders.
The investigation is related to allegations that Shift4 may have issued materially misleading business information to the public.
If you purchased Shift4 securities, you may be able to join a prospective action.
To join the action, simply click the "Join This Class Action" link.
Discover more: Shift4 Ceo
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