Overview
- Fiserv shares tumbled more than 40% on Wednesday, erasing about $30 billion in value, then fell another 7.1% on Thursday after CEO Mike Lyons withdrew long-term targets set under Bisignano.
- Lyons said the prior earnings goals would have been difficult to achieve and cited deferred investments and cost cutting aimed at propping up short-term margins.
- Between May and July, Bisignano sold roughly $530 million in Fiserv stock before entering government, avoiding about $300 million in losses and receiving a Certificate of Divestiture that confers tax advantages.
- An investor lawsuit alleges executives misled shareholders about growth in the Clover point-of-sale business, and the forecast withdrawal has drawn fresh attention to those claims.
- Sen. Ron Wyden and Rep. John Larson launched inquiries into Bisignano’s knowledge of a Direct Express award and the end of paper checks for beneficiaries, while SSA says he met ethics obligations and an advocacy group urged investigations and his resignation.