INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation Of Sezzle Inc. (NASDAQ: SEZL) and Encourages Investors with Substantial Losses or Witnesses with Relevant Information to Contact the Firm

NEWTOWN, Pa., Dec. 18, 2024 /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving Sezzle, Inc. (NASDAQ: SEZL) resulting from allegations of providing potentially misleading business information to the investing public.

If you have non-public information that could assist in the Sezzle Investigation or if you are a Sezzle investor who suffered a loss and would like to learn more, you can provide your information HERE.

You can also contact attorney Eric Lechtzin of Edelson Lechtzin LLP by calling 844-563-5550 ext. 1 or e-mailing [email protected].

THE COMPANY: Sezzle is a financial technology company located in Minneapolis, operating in the U.S. and Canada. It provides a payment platform that allows shoppers to make purchases with interest-free installment plans at participating online retailers.

THE ALLEGED WRONGDOING: On December 18, 2024, Hindenburg Research released a report titled, "Sezzle: A Failing 'Buy Now, Pay Later' Platform Playing Short-Term Tricks as Insiders Cash Out via Stock Sales and Margin Loans." The report expresses concerns about Sezzle's sustainability, highlighting risky financial practices, a declining customer and merchant base, insider stock sales, and questionable subscription practices.

The Company borrows at high interest rates to offer loans to high-risk consumers, resulting in increased credit losses. Since 2021, the number of active merchants on its platform has decreased by 51%, and its customer base has dropped by 20%. Meanwhile, Company insiders have sold $71 million in stock, and the CEO has pledged $542 million in shares as collateral for a margin loan, representing ~30% of the Company's total shares.

While subscriptions now comprise a larger portion of revenue, customer complaints indicate unauthorized enrollments. With nearly 1,000 complaints and a low 1.1-star rating from the Better Business Bureau (BBB), Hindenburg Research questions Sezzle's long-term viability.

ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and catastrophic injuries.

For more information, please contact:

Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 ext. 1
Email: [email protected]
Email: [email protected]
Web:  www.edelson-law.com 

This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

SOURCE Edelson Lechtzin LLP