Overview

• Paycom Software, Inc. is facing a class action lawsuit due to allegations of misleading investors about the impact of its Beti product on revenue.
• The company's Beti product reportedly led to cannibalization of Paycom's services and revenues, which the company failed to disclose.
• As a result of the cannibalization, Paycom missed its expected 3Q23 revenue and had to revise its expected 2023 revenues.
• The issue resulted in projected 2024 year-over-year revenue growth to between 10% and 12%, well below expectations.
• Shareholders who suffered losses are reminded of the fast-approaching lead plaintiff deadline on January 9, 2024.