Paycom Software is facing an investigation into potential violations of federal securities laws by Investing.com

Investing.com | Editor Pollock Mondal

Published November 9, 2023 1:31 AM ET

Paycom (NYSE:PAYC) Software Inc. is under scrutiny as law firm Kirby (NYSE:KEX) McInerney LLP investigates potential claims against the company for possible violations of federal securities laws and other illegal business practices. This follows a Nov. 1 announcement that saw Paycom’s shares plummet $94.28, or about 38.49%, from $244.97 a share. stock at only $150.69.

The law firm encourages those who have invested in Paycom securities to contact them regarding this ongoing investigation. In addition, the law firm of Frank R. Cruz is actively encouraging affected shareholders to participate in the investigation, addressing their rights and claims related to the significant share price decline.

The sharp drop in Paycom’s stock price was triggered by an announcement of an investigation into potential violations of federal securities laws. This news comes on the heels of disappointing Q3 results announced by Paycom 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 that allows employees to monitor and correct their own pay discrepancies. The rollout of this product led to redundancy in some of Paycom’s offerings, causing customers to stop buying other services and billable items.

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