Expensify $9.5M Securities Class Action Settlement

Investors who purchased Expensify Inc. common stock pursuant or traceable to the company's registration statement filed in connection with its initial public offering on Nov. 10, 2021, may be eligible to claim a cash payment from a class action settlement.

Expensify Inc. and several individual and underwriter defendants agreed to pay $9.5 million to settle a securities class action lawsuit alleging they made misrepresentations and omissions of material fact in the registration statement they filed for Expensify's IPO.

Who can file a claim?

The settlement class includes all persons and entities who purchased Expensify Inc. common stock pursuant or traceable to the registration statement filed in conjunction with Expensify's initial public offering on Nov. 10, 2021, and suffered resulting damages.

Additional details

• Both individuals and entities can be class members.
• Each separate legal entity or separately managed account must submit a separate claim.
• Joint beneficial owners must each sign the claim form.
• Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.

How much can class members get?

The total settlement fund is $9,500,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased pursuant or traceable to the IPO registration statement
• The timing of each purchase and sale
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average recovery per allegedly damaged share is approximately $0.85 before deductions for attorneys' fees, expenses, costs and awards based on approximately 11.1 million eligible shares.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation.
• For shares purchased between Nov. 10, 2021, and Feb. 9, 2022, and held as of the close of trading on Nov. 29, 2023, the recognized loss is the number of shares multiplied by $24.58 (the $27 IPO price minus the $2.42 trading price on Nov. 29, 2023).
• For shares purchased after Feb. 9, 2022, or sold before Nov. 29, 2023, there is no recognized loss.

• The settlement administrator will not calculate a recognized loss on transactions that resulted in a net gain.
• If total recognized losses exceed the fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim an Expensify securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The deadline to file a claim is June 29, 2026.

Settlement administrator's mailing address: Wilhite v. Expensify Inc., et al., c/o Strategic Claims Services, 600 N. Jackson St., Suite 205, P.O. Box 230, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Purchases of Expensify common stock from Nov. 10, 2021, through Nov. 29, 2023
• Sales of Expensify common stock from Nov. 10, 2021, through Nov. 29, 2023
• Holdings of Expensify common stock as of the close of trading on Nov. 29, 2023

Class members must also provide documentation to support their transactions in Expensify common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional information found in a confirmation slip

Payout options

• Physical check

$9.5 million settlement fund

The $9,500,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,375,000
• Attorneys' expenses: Up to $180,000
• Service award to lead plaintiff: Up to $25,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: June 2, 2026
• Deadline to file a claim: June 29, 2026
• Fairness hearing: June 30, 2026

When is the Expensify securities class action settlement payout date?

The settlement administrator will issue payments after the court approves the settlement and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged Expensify Inc. and other defendants made misrepresentations and omissions of material fact in the registration statement filed for Expensify's initial public offering on Nov. 10, 2021. The plaintiffs claimed Expensify failed to disclose events that damaged the company's reputation and business model, causing the stock to decline significantly from its $27 per share IPO price.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form