The Response from USA Technologies, Inc. to the Purported Class Action Lawsuit Against Them
USA Technologies, Inc. recently responded to a purported lawsuit against them, which was filed on October 1st 2015 in U.S. District Court for the Eastern District of Pennsylvania. This was raised by a group of people who had purchased stock in the company, and alleges that USA Technologies, Inc. and its executives knowingly made false or misleading statements. Key among these are statements relating to a large amount of small balance accounts which are uncollectible by the company.
This claim asks for unspecified damages, which would include legal costs, and to be certified as a class action.
Who Are USA Technologies, Inc.?
USA Tecnologies, Inc. (USAT) are currently the market leaders in America for M2M (machine to machine – this refers to non-cellphone devices that need to communicate with each other over a wireless network) and cashless payment technologies for the small ticket, self service product market (that is, things like vending machines). It has 87 patents to its name, and partnerships in place with such companies as Visa, Verizon, and Chase Paymentech
As well as the M2M and cashless payment services for self service retail, USAT also has other products relating to PCI compliant payments in other sectors, and is a company that invests strongly in innovation, research and development.
What Was USAT’s Response to the Purported Class Action Lawsuit?
Forward Looking Statements
They say that other than things in the release that are provable historical fact, the statement comprises forward looking statements using wording like ‘anticipate’, ‘expect, ‘believe’, ‘intend’ and ‘estimate’, which should only be understood as meaning that these are the beliefs of management, who are of course unable to predict the future with any real accuracy. This is a standard point included in statements relating to lawsuits, as it is important to stress that any response is taken as the understandings and predictions of the defendants at the time of the statement only.
With USA Technologies, Inc. clearly planning to defend strongly against the claims made against them, it will be interesting to see how this case is resolved and whether they are able to hold up against the claims of their investors and their representative.