UPDATE: Apparently the case has been dropped, with the firm behind the class action, LPC Avocat, reaching out to tell us as much.
An application for a class action suit was filed in the Superior Court District of Montreal against Nuvei (Nasdaq: NVEI) and Hollywood actor Ryan Reynolds, alleging that they gave the false impression the Canadian celebrity actually “invested” in the tech firm but he was only gifted shares in reality.
The lawsuit cited Nuvei’s press release on Monday saying “Hollywood actor, producer and entrepreneur Ryan Reynolds has today announced that he has invested in Canadian fintech company Nuvei Corporation.” The publicity also touted Reynolds’ “exceptional track record of investing” and paralleled the move with the actor’s other investments: Mint Mobile, American Aviation Gin, and Wrexham Football Club.
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“We’re a global company but extremely proud of our Canadian roots and values, so to have one of the most internationally recognizable Canadians, as well as an entrepreneur with such renowned business acumen, join our investors is a privilege,” the suit further cited Nuvei CEO Phil Fayer in the press release.
This announcement was coupled with online videos featuring Reynolds promoting Nuvei as a global tech company with Canadian roots. In one of the videos, the actor touted the firm, while proud of its national identity, as a global company serving Fortune 500 firms.
“Also, Nuvei is based right here in Canada, which is why I became an investor,” Reynolds said in the video.
The class suing the firm and Reynolds, representing Nuvei investors on or after September 17, 2020, said that the company’s press release “contains materially false and misleading information because Reynolds never invested his money in Nuvei.” Instead, he was actually gifted shares (in what is believed to be $25 million worth in the form of Restricted Shares Units (RSU)).
Reportedly, in an interview with CNBC’s Squawk Box, Reynolds explained: “my job is storytelling… [my] job would be more defined in not necessarily financial investments but emotional investments.”
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“The financial investment side? I’m no wizard at it. It’s the emotional investment side of it, that’s the part where I get most fun.”
Reynolds was also labeled “Nuvei investor” in one of the graphics and referred to himself as an “investor” in one of the videos promoting Nuvei played on the news program.
The lawsuit cited Ben Axler, Founder and Chief Investment Officer of Spruce Point Capital Management, who released an 84-page report about Nuvei a day after Reynolds’ investment was announced. In it, Adler provided documents of the alleged 484,590 RSU grant (valued at $25 million) to an unnamed third-party consultant.
Nuvei’s share price fell more than 8% in pre-market trade on April 18, 2023, following the publication of said report.
“It is illegal and unethical for a multi-billion dollar publicly traded company, aided and abetted by one of the most popular and followed celebrities in the world, to mislead the investing public into buying their company’s stock under the false belief that a celebrity has invested in their company,” the lawsuit added.
Nuvei last traded at $42.31 on the Nasdaq.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
This class action suit is 100% based on garbage evidence from a ‘report’ by noted liar Ben Axler of Spruce Point Capital. SP released a bunch of flat-earth level ‘evidence’ last week targeting NVEI. It’s all been disregarded as nonsense by every major analyst on the Street.
You would do well to disregard.