Damri v. LivePerson, Inc.: Date Argued: February 20th, 2026; Docket Number: 25-964

Case Summary: Gemini saidIn the case of Damri v. LivePerson, Inc. (Docket No. 25-964), argued before the U.S. Court of Appeals for the Second Circuit on February 20, 2026, the relevant facts are as follows:Fact SummaryThe litigation is a federal securities class action brought on behalf of investors who purchased shares of LivePerson, Inc., a conversational AI company, between May 2022 and early 2024.The core factual dispute involves the company’s February 2022 acquisition of WildHealth, a precision medicine startup, for approximately $150 million.Plaintiffs allege that LivePerson and its executives made false and misleading statements regarding the financial health and growth prospects of WildHealth while simultaneously implementing significant capital cuts and layoffs that hindered the subsidiary's ability to generate revenue.A central factual element of the complaint is the disclosure in early 2023 that Medicare reimbursements for a discontinued WildHealth COVID-19 testing program had been suspended, an event plaintiffs claim was known but withheld from investors to artificially inflate the stock price.The factual record highlights a massive decline in LivePerson's market value, with the share price falling over 57% on March 16, 2023, following the company's admission of "material weaknesses" in its internal controls over financial reporting.In March 2025, the district court dismissed the lawsuit with prejudice, finding that the plaintiffs failed to provide specific facts demonstrating "scienter"—the intent to deceive—or that the executives’ upbeat statements about WildHealth lacked a reasonable basis at the time they were made.The appeal, docketed as 25-964, challenges this dismissal, with the appellant arguing that the trial court ignored testimony from confidential witnesses who alleged that the company’s internal metrics directly contradicted its public "business as usual" narrative.During the oral arguments on February 20, 2026, the Second Circuit panel examined whether the company had a duty to disclose the Medicare suspension earlier and whether the executives' stock sales during the class period provided a sufficient motive for the alleged fraud.The court also scrutinized whether the "material weakness" in internal controls, once admitted, provided retroactive evidence that the company's previous financial statements were factually unreliable.