Block & Leviton sues Affirm Holdings for securities fraud

Block & Leviton LLP filed a class-action lawsuit on behalf of shareholders against Affirm Holdings Inc. and certain of its executives for securities fraud in the U.S. District Court for the Northern District of California.

The case was filed on behalf of investors who incurred damages from their purchases of Affirm's securities Feb. 10, after the company sent a tweet at approximately 1:15 p.m. ET portraying a highly successful quarter, which included an increase in revenue of 77%.

This led to a spike of nearly 10% in the company's share in intraday trading.

Block & Leviton alleged that the tweet was misleading as it did not disclose full details of Affirm Holdings' second-quarter financial results.

Affirm Holdings deleted the tweet and released its full second-quarter financial results ahead of schedule, posting a loss of 57 cents per share, compared with analyst expectations of 37 cents per share.

Following the results' release, Affirm Holdings' share price fell from an intraday high of $83.57 per share to close at $58.68 per share, or approximately 32%.