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MQ.US
id: 1423
Marqeta (MQ) Regulatory Risk Misrepresentation Case
N.D. California
Court4:24-cv-08874
Case number08/07/2024
Class period Start11/04/2024
Class period End02/07/2025
Lead Plaintiff motion deadline- $MQ investors filed a lawsuit against Marqeta for misleading them about regulatory risks and their impact on financial performance.
- On November 4, 2024, Marqeta lowered its Q4 revenue and profit guidance, citing increased regulatory scrutiny. Following this news, $MQ dropped by 42.5%.
Case Details:
Between August 7, 2024, and November 4, 2024, Marqeta repeatedly assured investors of its financial stability and growth prospects.
During its Q2 earnings call on August 7, 2024, the company emphasized confidence in achieving 16–18% net revenue growth and 22–24% gross profit growth for Q4 2024.
However, on November 4, 2024, Marqeta slashed its revenue and gross profit guidance, revealing it now expected just 10–12% net revenue growth and 13–15% gross profit growth.
Following this news, $MQ dropped by 42.5%.
Based on these events, $MQ investors filed a lawsuit against Marqeta, accusing the company of the following:
- It misled investors about its ability to meet financial projections despite regulatory challenges.
- It failed to disclose the full extent of heightened compliance burdens impacting its operations.
Investors believe Marqeta misrepresented its business outlook by downplaying regulatory risks.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/04/2024
Filing date
12/09/2024
Lead Plaintiff Deadline
02/07/2025