Invested in
PaySign?
- Did you acquire shares of PaySign (NASDAQ: PAYS), formerly known as 3PEA International (NASDAQ: TPEA) (“PaySign”) in or before March 2019 and do you still hold your PaySign shares?
- Are you concerned about the recent performance of PaySign’s stock price?
- Are you concerned about the conduct of PaySign’s officers and directors related to Paysign’s allegedly deficient internal controls over financial reporting and information technology general controls?
- Would you like your potential options for compensation or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Investments
Free Case Evaluation
The PaySign Class Action Investigation page is the resource for long-term shareholders of PaySign who would like to evaluate compensation claims.
- Free Case Evaluation
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Posted August 11, 2023
PaySign Class Action Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating potential securities violations and corporate misconduct, as well as questionable business practices involving PaySign and have identified potential areas of concern for PaySign investors.
What PaySign Investors May Do
PAYS investors interested in an evaluation of their potential options to seek compensation and/or pursue claims related to their PaySign investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in PaySign, Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned PAYS stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has PaySign Been Accused of Misconduct?
PaySign and its control persons, have been the subject of a class action lawsuit, filed in the United States District Court for the District of Nevada in March 2020.
PaySign and its control persons were accused in that class action lawsuit of, among others, violating securities laws by allegedly making materially false and/or misleading statements and failing to disclose materially adverse facts that allegedly caused Paysign’s stock to trade at artificially inflated prices. According to the amended complaint, Paysign’s CEO, Mark Newcomer, and its CFO, Mark Attinger, reportedly assured investors of the effectiveness of Paysign’s internal controls over financial reporting several times, while allegedly being aware of or recklessly disregarding signs of material weaknesses in said control.
Were There Problems with Paysign’s Financial Reporting?
PaySign, through its control persons, allegedly employed an accountant who reportedly prepared company’s financial statements while he was subject to a Cease-and-Desist Order issued by the Securities and Exchange Commission (“SEC”) preventing the accountant from practicing before SEC. According to the SEC, the accountant allegedly ignored the signs of an elaborate fraud related to another company. Furthermore, the accountant was allegedly subject to a disciplinary action by the Nevada State Board of Accountancy, pursuant to which he was on probation from June 9, 2016 to December 9, 2018, reportedly making it impermissible for him to assist PaySign in preparing the Company’s financial statements for 2019, the amended complaint alleges.
In March 2020, PaySign announced its inability to timely file its annual report for the fiscal year ending in December 2019. The company further added it required an extension to be able to complete an ongoing financial audit, disclosing that its “management identified material weaknesses related to (i) assessment of internal controls over financial reporting and (ii) information technology general controls.”
According to auditor’s opinion on the internal control over financial reporting, PaySign “lacked sufficient monitoring and disclosure controls to prevent and terminate the employment of an individual barred from practicing before the Securities and Exchange Commission who assisted the Company in accounting matters related to the preparation of its financial statements for 2017, 2018, and 2019,” the complaint alleges.
In July 2020 PaySign’s Audit Committee reportedly approved the dismissal of company’s independent registered public accounting firm, Squar Milner LLP, and appointed BDO USA, LLP, disclosing in the same 8-K that “the material weaknesses in the Company’s control environment and monitoring … have not yet been remediated.”
Less than two years later, BDO USA, LLP announced its resignation as PaySign’s independent registered public accounting firm.
Potential Compensation Claims
What Happened with PaySign’s Technology Controls?
According to the amended class action complaint, one of the defendants, Daniel Spence, who was PaySign’s co-founder and Chief Technology Officer (“CTO”), allegedly altered the company’s internal software that stored customer account profiles on a regular basis, without providing other employees with notice that he had done so. This allegedly resulted in discrepancies between customers’ account balances and their correct and actual balances, an issue “widely known throughout the Company” the complaint adds.
The class action complaint alleges PaySign CTO’s actions led to the material weakness in the Company’s information technology controls. In September 2021, PaySign announced the termination of Spence’s employment, with him reportedly continuing to stay with the company in advisory capacity. In August 2022 he reportedly resigned as a member of the Boad of Directors.
Do PaySign Shareholders Have Claims Following PaySign’ Stock Price Drop?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and evaluating potential claims for compensation and/or other redress on behalf of PaySign long-term shareholders whose share value dropped following the alleged defective internal controls over PaySign’s financial reporting. The Rosca Scarlato attorneys have decades of combined experience representing victims of corporate or financial misconduct.
If you are a PaySign investor concerned about the drop in the value of your investment, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, PaySign investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The PaySign Class Action Investigation page is not affiliated with PaySign, Inc. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
