Sezzle Inc. (SEZL), the buy-now-pay-later company, saw its stock price drop by 5.86% during Tuesday's trading session. This 24-hour plunge comes after reports that the company has severed ties with several illegal online pharmacy merchants.
According to a research note issued by The Bear Cave, Sezzle recently terminated its relationships with certain merchants who were engaged in illegal activities related to online pharmacies. While the specific details and impact of these ties are not fully disclosed, the news has raised concerns among investors, leading to the significant stock price decline.
As a provider of buy-now-pay-later services, Sezzle's business relies heavily on maintaining a reputable network of merchant partners. Any association with illegal activities could potentially damage the company's reputation and expose it to regulatory scrutiny, contributing to the sell-off observed in the stock market.
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