An investigation on behalf of investors of Shopify Inc (US) (NYSE:SHOP) shares over potential securities laws violations by Shopify Inc (US) (NYSE:SHOP and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Shopify Inc (US) (NYSE:SHOP) concerning whether a series of statements by Shopify Inc (US) regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Canada based Shopify Inc. (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. Shopify Inc reported that its annual Total Revenue rose from $205.23 million in 2015 to $389.33 million in 2016 and that its Net Loss increased from $18.79 million in 2015 to $35.35 million in 2016.

Shares of Shopify Inc (US) (NYSE:SHOP) grew from $19.33 per share in February 2016 to as high as $123.81 per share on September 18, 2017.

On October 4, 2017, a report was pbuliched characterizing Shopify Inc as 'a completely illegal get-rich quick scheme.'The report alleged, among other things, that Shopify Inc inaccurately described the Company's relationship with certain affiliates, stating, in part: 'Shopify calls these affiliates 'partners.' We call them promoters selling business opportunities.' The report compared Shopify's business practices to those of Herbalife Ltd. ('Herbalife'), a company that recently paid $200 million and agreed to an order 'prohibit[ing] Herbalife from misrepresenting distributors' potential or likely earnings' to settle Federal Trade Commission charges.


Shares of Shopify Inc (US) (NYSE:SHOP) declined on October 5, 2017 to $93.66 per share.