Paycom (NYSE:) Software Inc. is under scrutiny as law firm Kirby (NYSE:) McInerney LLP investigates potential claims against the company for possible infractions of federal securities laws and other illicit business practices. This follows an announcement on November 1, when Paycom’s shares plummeted by $94.28 or approximately 38.49%, from $244.97 per share to just $150.69.
The law firm is urging those who have invested in Paycom securities to reach out to them regarding this ongoing probe. In addition, Frank R. Cruz’s law firm is actively encouraging affected shareholders to join the investigation, addressing their rights and claims related to the significant stock price fall.
The sharp decline in Paycom’s stock price was triggered by an announcement of a probe into potential federal securities laws violations. This news comes on the heels of disheartening Q3 results announced by Paycom’s CFO Craig Boelte on October 31, 2023. The results revealed lower than expected revenue forecasts for Q4 2023 and a modest growth outlook of just 10% to 12% for 2024.
The downturn in Paycom’s fortunes can be traced back to July 2021 when the company released Beti, an innovative self-service payroll tool allowing employees to oversee and rectify their own payroll discrepancies. The rollout of this product led to redundancy in some of Paycom’s offerings, causing customers to stop purchasing other services and billable items.
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