A class action lawsuit was filed against Fiserv, Inc. (FI) by Levi & Korsinsky on July 24, 2025. The plaintiffs (shareholders) alleged that they bought Fiserv stock at artificially inflated prices between July 24, 2024, and July 22, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Fiserv stock during that period can click here to learn about joining the lawsuit.
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Fiserv is an American fintech company that provides transaction processing software to banks and retail merchants. Fiserv offers its Clover platform, the company’s flagship product and key growth driver. Clover serves as a payment gateway, enabling secure, efficient processing of credit, debit, and mobile transactions for financial institutions and their customers.
Fiserv’s claims about Clover’s growth strategies, competition, attrition, GPV (gross payment volume) growth, and business prospects are at the heart of the current complaint.
Fiserv’s Misleading Claims
According to the lawsuit, Fiserv and four of its current and/or former senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about Clover’s revenue growth and ancillary issues from SEC filings and related material.
During the Class Period, the former CEO pointed out in an earnings call that Clover’s revenue increased by 28% in the second quarter, supported by a 17% rise in annualized payment volume. He added that the gap between revenue growth and volume growth is due to more use of value-added solutions, a shift in sales channels, and value-based pricing.
Additionally, in an earnings call dated October 22, 2024, the former CEO stated that the Merchant Solutions segment witnessed another strong quarter, with organic revenue growth of 24% compared to the prior year period.
Finally, during the UBS Global Technology & AI Conference held on December 4, 2024, Fiserv’s CFO noted that Clover was growing rapidly. He added that non-Clover business is expected to grow at a mid-single-digit rate worldwide, with revenue also rising as existing small business clients expand.
However, subsequent events (detailed below) revealed that the defendants failed to inform investors that Clover’s revenue growth and GPV growth were temporarily boosted by forced conversions from its older point-of-sale platform, Payeezy, which concealed a material slowdown in new merchant business.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about various cost issues and other challenges with Payeezy and the temporary boost in Clover’s key metrics.
The information became clear after a series of partial disclosures on July 23, 2025, when Fiserv released its Q2FY25 results. During the same call, Fiserv reduced the upper end of its full-year organic growth outlook and reported that quarterly organic revenue growth in the Merchant segment had slowed to 9% year-over-year, down from 11% in the prior quarter.
The lawsuit alleges that following the results, analysts began questioning the credibility of Fiserv management. Notably, Wolfe Research analysts noted that investors will likely wait for stable and credible metrics and guidance before significantly increasing their shareholdings in Fiserv.
Furthermore, Keefe Bruyette & Woods analysts stated that Fiserv again missed Merchant segment growth expectations and cut its FY25 organic growth outlook to the low end of the prior range, signaling that the previously expected sharp growth in the Merchant segment is not achievable. Following these reviews, FI stock plunged nearly 14% on July 23.
To conclude, the defendants failed to inform investors that following the conversions, a significant portion of former Payeezy merchants switched to competing solutions due to Clover’s high pricing, inadequate customer service, and other issues, which led to a sharp decline in the Merchant segment. Due to these issues, FI stock has lost 35.4% so far this year.
