On March 15, 2023, after the market closed, LivePerson issued a press release announcing its fourth quarter 2022 financial results disclosing that LivePerson reported a loss and revenue decline. In its press release, LivePerson also revealed that its subsidiary, WildHealth, received a notice that Medicare was suspending reimbursement for services rendered under the Medicare demonstrate program (the “Program”) in which certain non-core services would be provided and reimbursed by Medicare. Accordingly, LivePerson stated that given the “inherent uncertainty as to the timing and amount of further reimbursement for services rendered under the Program, the Company has elected to take a reserve for revenue associated with services delivered under the Program in the fourth quarter of 2022 for which payment has not yet been collected.”

On this news, LivePerson’s stock price fell $5.64, or 57.73% to close at $4.13 per share on March 16, 2023, thereby injuring investors.