Marqeta Investors Face Class Action Suit Amid Major Losses – What You Need to Know

Significant Losses Prompt Class Action Lawsuit Against Marqeta

On December 15, 2024, Robbins Geller Rudman & Dowd LLP issued an announcement regarding Marqeta, Inc. (NASDAQ: MQ), signaling a major legal opportunity for investors who faced significant losses. If you bought Marqeta securities between May 7, 2024, and November 4, 2024, you're eligible to seek the position of lead plaintiff in a class action lawsuit. This notice comes in the wake of revelations about the company's underperformance and alleged misleading statements made by executives.

Background of the Case

The class action, titled Ford v. Marqeta, Inc., involves allegations that Marqeta misrepresented key business aspects to investors. Specifically, it claims that the company downplayed regulatory hurdles that would affect its business, leading to revised financial guidance, which disappointed stakeholders. On November 4, 2024, Marqeta disclosed fourth-quarter revenue growth projections that were substantially lower than market expectations, prompting a more than 42% drop in its stock price. This unexpected announcement jolted investors, who now find themselves needing to reassess their positions.

Details of the Allegations

The lawsuit primarily accuses Marqeta and specific top executives of violating the Securities Exchange Act of 1934. The complaint alleges that the defendants failed to disclose crucial information regarding regulatory challenges and financial outlooks that might have influenced investors’ decisions. The discrepancies between Marqeta’s forecasted financials and actual results have raised numerous questions about transparency and fiduciary responsibility.

As per the allegations, Marqeta initially suggested a net revenue growth of 16-18% and a gross profit growth of 22-24%. However, the recent guidance dropped these projections to only 10-12% and 13-15%, respectively, highlighting a significant decline in expected performance amidst heightened scrutiny of the banking sector and alterations in customer programs.

Steps to Take for Affected Investors

Investors who suffered losses during the class period should act quickly, as the deadline to apply for lead plaintiff status is February 7, 2025. The Private Securities Litigation Reform Act of 1995 allows investors to put forth their claims and appoint a lead plaintiff to direct the lawsuit on behalf of all affected shareholders. This lead plaintiff must demonstrate they have a significant interest in the case and represent the collective interests of all investors involved.

Prospective lead plaintiffs can reach out through the provided link for the legal firm or contact attorneys directly for guidance and further details on how to proceed with their claims. It's crucial to understand that participation in the lawsuit does not depend on leading it; however, being a lead plaintiff may grant more influence in the direction of the legal strategy.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller is a prominent law firm specializing in securities class action lawsuits, consistently ranked among the top firms for recovering monetary relief for investors. With a legacy of successful litigation, they have secured over $6.6 billion for investors in various securities-related cases, including record-breaking settlements like $7.2 billion in the Enron case. The firm's extensive resources and expertise make them a powerful advocate for investors seeking justice in the wake of financial mismanagement or fraud.

Conclusion

For those impacted by the recent fluctuations in Marqeta's stock and subsequent announcements, this class action lawsuit might represent an opportunity to seek recovery for financial losses incurred. Affected investors are encouraged to reach out to Robbins Geller to explore their options and potentially take part in the upcoming legal proceedings. This situation emphasizes the importance of vigilance and proactivity in protecting investor rights in turbulent market conditions.