Securities Class Action Lawsuit Alleges Fiserv Misled Investors

Law firm Labaton Keller Sucharow filed a securities class action lawsuit against FinTech and payments company Fiserv, alleging that it misled investors.

The complaint centers on Fiserv’s payment gateway product Clover, Labaton Keller Sucharow said in a Thursday (July 24) press release.

Fiserv did not reply to PYMNTS’ request for comment.

According to the press release, the lawsuit alleges that from July 24, 2024, through July 22, 2025, Fiserv misled investors by failing to disclose that it forced the merchants using its older platform, Payeezy, to migrate to Clover; that these “forced conversions” boosted Clover’s revenue growth and gross payment volume (GPV) and concealed a slowdown in in new merchant business; and that shortly after these conversions, a “significant portion” of former Payeezy merchants switched to Clover’s competitors’ solutions.

It also alleged that Fiserv failed to disclose that Clover’s GPV growth was “significantly slowing,” that its revenue growth was unsustainable, and that Fiserv’s statements about Clover’s business prospects and other aspects of its business were “materially false and misleading,” per the release.

“The market began to learn the truth about Defendants’ fraud on April 24, 2025,” Labaton Keller Sucharow said in its press release. “On that date, Fiserv shocked investors by reporting Clover GPV growth of only 8 percent for the first quarter of 2025, a material stepdown from 2024 GPV rates of between 14 and 17 percent. The company attributed this slowing growth to lower 2025 transaction volumes from Payeezy merchants who had converted to Clover.”

The law firm said in the release that Fiserv stock dropped 18.5% and closed at $176.90 per share on April 24. The company’s stock later dropped to $159.13 on May 15 when Fiserv disclosed that the slowdown in GPV growth would continue through 2025, and dropped to $143.00 per share on Wednesday (July 23) when the company lowered the top end of its full-year organic growth guidance range, according to the release.

Labaton Keller Sucharow said in the release that it filed the suit on behalf of the City of Hollywood Police Officers’ Retirement System and that members of the class include anyone who purchased or acquired Fiserv common stock during the class period and were damaged.

PYMNTS reported Wednesday that Fiserv trimmed its guidance for overall 2025 organic revenue growth rates to 10%, which is the low end of the 10% to 12% growth that the company previously targeted.