Milwaukee-based fintech company
Fiserv, Inc. is being sued for alleged violations of federal securities law following the acquisition and integration of point-of-sale platform
Clover.
The complaint alleges Fiserv misled investors by artificially inflating its growth numbers by forcing legacy customers using Payeezy, the company’s older point-of-sale platform, to Clover, its newest platform acquired in 2019.
“Fiserv disagrees with the claims and will vigorously defend itself in the lawsuit," the company said in a statement provided Monday.
The class action lawsuit was filed Thursday in U.S. District Court for the Southern District of New York by the
City of Hollywood Police Officers’ Retirement System.
The class named in the lawsuit includes any person who purchased Fiserv common stock between July 24, 2024 and July 22, 2025.
Fiserv executives
Frank Bisignano,
Michael Lyons,
Robert Hau and
Kenneth Best are named as defendants in the case.
In 2023, Fiserv began to phase out Payeezy, which was cheaper for small business merchants and provided them with basic e-commerce functions.
Fiserv “forcibly migrated” as many as 200,000 merchant locations on Payeezy to Clover from late 2023 through the first half of 2024, according to the lawsuit. This back book conversion provided a rapid boost to Clover revenue.
"As this forced migration increased Fiserv’s headline growth numbers, defendants falsely claimed that this growth was being driven by new customers organically signing up for Clover," according to the complaint.
Fiserv reported Clover revenue of $2.7 billion on gross merchandise value of $310 billion for 2024, accounting for half of Fiserv’s year-over-year revenue growth.
"Unbeknownst to investors, Clover’s 2024 revenue and GPV growth were boosted by these forced migrations," according to the lawsuit.
On April 24, 2025, Fiserv reported Clover GPV growth of only 8% for the first quarter of 2025, a “material stepdown” from 2024 GPV rates of between 14% and 17%, according to the lawsuit.
“While this news partially revealed defendants’ fraud, defendants continued to defraud investors by failing to disclose that this spread was largely due to the loss of transaction volumes from a substantial number of former Payeezy merchants who cancelled their Clover contracts,” according to the lawsuit.
A jury trial for the case has been requested, along with compensatory damages for all impacted investors.
