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Fiserv (FI) Faces Class Action Lawsuit over Clover’s True Growth

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A securities class action lawsuit has been filed against Fiserv, alleging it misled shareholders about the growth of its Clover platform.

Fiserv (FI) Faces Class Action Lawsuit over Clover’s True Growth

Fiserv (FI), a payments and fintech company, is facing a federal securities class action lawsuit filed by the City of Hollywood Police Officers’ Retirement System. The suit alleges that Fiserv misled shareholders about the growth of its Clover point-of-sale (POS) and business management platform.

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The lawsuit names several top Fiserv executives, including former CEO Frank Bisignano, current CEO Michael Lyons, Chief Financial Officer Bob Hau, and Chief Accounting Officer Kenneth Best.

Fiserv has denied the allegations and says it will “vigorously defend” itself in court.

Key Allegations Against Fiserv

The lawsuit claims that from July 24, 2024, to July 22, 2025, Fiserv failed to disclose key information to investors. Specifically, it’s alleged that Fiserv forced merchants using its older Payeezy platform to switch to Clover.

These “forced conversions” are said to have artificially inflated Clover’s revenue growth and gross payment volume (GPV), and to have hidden a slowdown in new merchant acquisitions. The complaint further said that a majority of these migrated merchants soon switched to Clover’s rivals.

Also, the lawsuit claims Fiserv hid signs that Clover’s payment volume growth was slowing and that its reported revenue growth was unsustainable. The plaintiffs said that Fiserv’s public comments about Clover’s business prospects and other company aspects were “materially false and misleading.”

FI Stock Decline

The truth came to light on April 24, 2025, when Fiserv said Clover’s payment volume grew just 8% in the first quarter, much lower than the 14% to 17% growth in 2024. The company attributed this slowdown to lower transaction volumes from the converted Payeezy merchants. After the news, Fiserv stock dropped 18.5%, closing at $176.90.

Again, the stock dropped another 16.2% to $159.13 on May 15 after Fiserv said Clover’s slow growth would persist in 2025. Then on July 23, shares fell 13.9% to $143.00 when Fiserv cut its full-year growth forecast from up to 12% down to 10%.

Is FI Stock a Good Buy?

Turning to Wall Street, FI stock has a Strong Buy consensus rating based on 24 Buys and four Holds assigned in the last three months. At $194.62, the average Fiserv stock price target implies a 37.03% upside potential.

See more FI analyst ratings

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