Lightspeed denied allegations by Spruce Point Capital that it violated U.S. securities law by inflating its market size and transaction volumes. “The report contains important inaccuracies and mischaracterizations which Lightspeed believes are misleading and clearly intended to benefit Spruce Point,” the Montreal-based point-of-sale company said in a statement. (The Logic)

Talking point: Meanwhile, boutique law firm Holzer & Holzer said it’s investigating Spruce Point’s allegations. The short seller’s report published Wednesday also claims Lightspeed has been “covering up increasing competitive pressures and double-digit organic declines in its business with a flurry of acquisitions.” The company reported strong earnings over the past few quarters, driven in part by a recent buying spree. It acquired two U.S. firms for a combined US$925 million in June, after buying New Zealand’s Vend for US$350 million in March. Lightspeed shares closed up 1.66 per cent on Friday, after falling nearly 12 per cent Wednesday, following Spruce Point’s report.