Montreal’s Lightspeed Commerce Inc. has reached a proposed $11-million settlement to resolve a class-action lawsuit in Quebec alleging misrepresentation of its financial performance, the company announced. The agreement, reached in June, avoids any admission of liability from Lightspeed, which has consistently denied the claims.
The lawsuit stemmed from a significant drop in Lightspeed’s share price following a critical report published in 2021 by Spruce Point Capital Management. Shareholders alleged the company overstated its financial health,prompting the legal action. A similar suit in the U.S. was dismissed earlier this year, with Lightspeed previously stating the allegations lacked legal merit and viewing that dismissal as a company victory.The proposed settlement requires approval from a Quebec Superior Court, with a hearing scheduled for November 21 in Montreal. Lightspeed (LSPD-T) maintains its position that it did not engage in wrongdoing.
