Spruce Point issues strong sell opinion on Remitly Global, faces 40%-55% risk

Spruce Point Capital Management issued a detailed report entitled, “Why We Mistrust Remitly”, that outlines why the firm believes and estimate that shares of Remitly Globa face approximately 40% – 55% potential long-term downside risk, or $9.00 – $12.00 per share. The firm does not believe that Remitly is leading authentically with its customer reviews, noting it has evidence that Remitly uses stock images and changes the purported names of people depicted in these images on its customer reviews website. Spruce Point adds that “Remitly uses Trustpilot review ratings as another means to instill confidence and trust in its services with prospective customers”, citing evidence that Remitly doctored its ratings by artificially boosting identical reviews from the same source from 4.5 to 5.0 stars.