Marqeta, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Marqeta, Inc. (MQ)

If you have held Marqeta securities securities since at least August 7, 2024, you may be able to you may be able to pursue remedies on behalf of the company, at no cost to you.

About Marqeta

Marqeta is a financial technology company that provides a cloud-based open application programming interface (API) platform. The company’s platform enables businesses to issue cards and process transactions, serving clients in sectors such as payments, banking, and commerce.

The company partners with banks and other financial institutions to deliver its services, which reportedly include card issuing, transaction processing, and compliance management.

What's Being Investigated

On December 9, 2024, a securities fraud class action was filed against Marqeta and certain executives covering the period August 7, 2024 through November 4, 2024. The complaint alleges that Marqeta’s leadership made materially false or misleading statements and failed to disclose key risks tied to heightened regulatory scrutiny affecting its business.

According to the complaint:

• Marqeta understated the regulatory challenges that were already impacting onboarding, program launches, and revenue growth.
• The Company and its officers reaffirmed optimistic growth projections despite knowing those targets were unlikely to be met under increased scrutiny.
• By November 4, 2024, Marqeta revised its guidance downward, citing changes in the regulatory environment among smaller banks that support many customer programs and the resulting incremental scrutiny that caused delays in launching new programs and pushed out volume and gross profit.

On this disclosure, Marqeta’s stock price fell $2.53 per share (42.5%), closing at $3.42 on November 5, 2024.

Key Timeline

• August 7, 2024: Alleged class period begins; Marqeta files Q2 2024 report and makes statements about growth outlook. Investors allege Marqeta’s upbeat Q2 outlook misled the market by downplaying regulatory risks.
• November 4, 2024: Marqeta reports Q3 results, cuts Q4 guidance, and attributes slower growth to regulatory scrutiny. Investors claim the reduced guidance finally revealed problems management already knew about.
• November 5, 2024: Stock drops 42.5% following the disclosure. Investors view the sharp stock drop as proof the alleged truth was material and concealed until then.

Why Investors May Be Concerned

Shareholders allege that Marqeta’s board and executives may have misled investors about the severity of regulatory scrutiny, allowed unrealistic revenue projections to stand, and failed to ensure the Company had proper internal controls to manage compliance risks.

Alleged concerns for investors:

• Misled investors about the severity of regulatory oversight and its impact on operations.
• Failed to maintain adequate compliance resources and internal controls.
• Allowed unrealistic financial guidance to persist, despite internal awareness of heightened risks.

For long-term stockholders, these issues raise questions about whether Marqeta’s directors and officers breached their fiduciary duties of oversight and disclosure, potentially harming the Company itself.

Your Rights and Next Steps

This investigation is focused on whether Marqeta’s leadership failed in their responsibilities to the Company. In these cases, shareholders can step in on the Company’s behalf.

Potential next steps:

• Seek corporate reforms to strengthen compliance and governance.
• Pursue recovery of funds or value lost because of alleged misconduct.
• Request court-approved incentive awards for serving as a representative shareholder.

If you have held Marqeta shares since at least August 7, 2024, you may have standing to pursue these remedies on behalf of the Company.

How Shareholders Can Take Action Now

Shareholder investigations are time-sensitive. If you have held Marqeta shares since at least August 7, 2024, you may be able to seek corporate reforms, the return of funds back to the Company, and a court-approved incentive award for you, all at absolutely no cost.

To join the investigation, complete the form below as soon as possible.