Paysign Board Sued Over Suspended Accountant, IT Control Issues

Paysign Inc.’s directors allegedly misled investors about the company’s information technology controls and user access, as well as disclosure controls over financial reporting, a shareholder derivative suit says.

A suspended accountant’s role preparing the company’s financial statements from 2017 to 2019, which the company revealed in a 2020 disclosure, allegedly prompted a significant stock drop, according to the complaint filed Wednesday in the US District Court for the District of Nevada.

Arthur De Joya, an accountant suspended by the US Securities and Exchange Commission for ignoring signs of an elaborate fraud associated with another company’s audit, served as ...