Case Summary



Case Details

  • Damri v. LivePerson, Inc. et al.
  • Class Period:May 10, 2022 - March 16, 2023
  • Date Filed:December 01, 2023
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:23-cv-10517
  • Lead Plaintiff Deadline: January 30, 2024
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A class action lawsuit has been filed against LivePerson, Inc., (“LivePerson”, “LPSN”, or the “Company”) (NASDAQ: LPSN) and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired LivePerson securities between May 10, 2022, and March 16, 2023, both dates inclusive (the “Class Period”).

LivePerson delivers mobile and online messaging solutions through Conversational Artificial Intelligence. In February 2022, the Company acquired WildHealth, Inc. (“WildHealth”), a precision medicine service which purportedly “leverages advanced machine learning to combine DNA analysis, biometrics, microbiome testing and phenotypic data to provide people with a blueprint for truly optimized health and a maximized health span.” As part of its business model, WildHealth often receives reimbursements for providing services to certain Medicare programs. In November 2022, unbeknownst to investors, WildHealth received notice that reimbursements for its services rendered under a Medicare demonstration program related to COVID-19 testing (the “Program”) were suspended pending further review.

The lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s disclosure controls and procedures contained a material weakness; (2) accordingly, LivePerson maintained deficient internal controls over its financial reporting; (3) as a result, LivePerson’s Q3 2022 financial statements failed to disclose the suspension of WildHealth’s Medicare reimbursements in connection with the Program and the resulting negative impact on the Company’s future revenues; (4) accordingly, LivePerson had overstated the Company’s future financial position and/or prospects; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On February 28, 2023, before market hours, LivePerson issued a Notification of Late Filing on Form 12b-25 regarding its Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 10-K”). Among other things, the notification revealed that, as a result of LivePerson’s acquisition of WildHealth, “the Company requires more time to perform additional review and testing of revenue recognition with respect to a recently discontinued WildHealth program, for which Medicare reimbursement is suspended pending further governmental review, and to complete its in-process review of internal controls and procedures.” On this news, LivePerson’s share price fell $1.69 per share, or 14.31%, to close at $10.12 per share on February 28, 2023.

Then on March 6, 2023, before market hours, the Company issued a current report on Form 8-K which disclosed that “the referenced review of WildHealth revenue is anticipated to affect fourth quarter 2022 revenue attributable to WildHealth’s participation in a Medicare demonstration program, due to suspension in November 2022 of Medicare reimbursements under the program and pending further governmental review.” On this news, LivePerson’s share price fell $0.78 per share, or 6.8%, to close at $10.69 per share on March 7, 2023.

Then, on March 15, 2023, after market hours, the Company issued a press release announcing its Q4 2022 financial results on Form 8-K, which provided that “[t]otal revenue was $122.5 million for the fourth quarter of 2022, a decrease of 1% as compared to the same period last year” and “[w]ithin total revenue, business operations revenue for the fourth quarter of 2022 decreased 1% from the comparable prior-year period to $113.0 million, and revenue from consumer operations decreased 3% from the comparable prior-year period to $9.4 million.”

Finally, on March 16, 2023, before market hours, the Company filed the 2022 10-K with the United States Securities and Exchange Commission. The 2022 10-K revealed that “due to certain control deficiencies which aggregated to a material weakness in the Company’s internal control over financial reporting as further described below, our disclosure controls and procedures were not effective as of December 31, 2022” and “[t]he control deficiencies, which in aggregate constitute a material weakness, were identified in connection with the Company’s previously disclosed review of certain transactions related to its subsidiary WildHealth.” On this news, LivePerson’s share price fell $5.64 per share, or 57.73%, to close at $4.13 per share on March 16, 2023, damaging investors.

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If you purchased or otherwise acquired LivePerson securities between May 10, 2022, and March 16, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at 

The deadline to apply to the Court to serve as a lead plaintiff in the LivePerson lawsuit is January 30, 2024.

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