FOR IMMEDIATE RELEASE
WASHINGTON, D.C. – Cohen Milstein Sellers & Toll PLLC announces that it has filed a securities class action lawsuit in the U.S. District Court for the Southern District of New York against GreenSky, Inc. (“GreenSky” or the “Company”) (NASDAQ: GSKY) and certain of its directors and underwriters, on behalf of purchasers of Class A common stock acquired in the Company’s initial public offering (“IPO”), which closed on May 29, 2018.
GreenSky, Inc. operates an online platform that enables creditors to process loan applications at the point of sale.
Plaintiff alleges that Defendants made false and misleading statements and omissions in the registration statement and prospectus for the Company’s IPO (the “Offering Documents”) and, in so doing, violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. At the time of the IPO, GreenSky was well underway in executing a strategy of swift expansion into the elective healthcare sector while simultaneously reducing its portfolio of solar panel merchants. This shift precipitated a significant decline in the Company’s largest source of revenue: transaction fees.
GreenSky charged its solar merchants high transaction fees but charged healthcare businesses substantially lower transaction fees. Defendants made false and misleading statements and omissions in the Offering Documents about the revenue effects of the change in the classes of merchants for whom it facilitated loans. When the truth was disclosed, GreenSky share prices dropped precipitously, and investors who made purchases pursuant or traceable to the IPO suffered harm.
If you purchased shares of GreenSky’s Class A common stock issued pursuant or traceable to the Company’s IPO, you may move the Court no later than January 28, 2019 and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago, Palm Beach, and Raleigh, and is active in major litigation pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600