DOCS Class Action Lawsuit Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Doximity, Inc. (DOCS) that a Securities Fraud Class Action Lawsuit Has Been Filed On Their Behalf
DOCS Class Action Lawsuit Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Doximity, Inc. (DOCS) that a Securities Fraud Class Action Lawsuit Has Been Filed On Their Behalf |
[20-April-2024] |
RADNOR, Pa., April 20, 2024 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that today the firm has filed a securities fraud class action lawsuit against Doximity, Inc. (NYSE: DOCS) ("Doximity" or the "Company") on behalf of investors who purchased or acquired Doximity common stock between February 9, 2022, and April 1, 2024, inclusive (the "Class Period"). This action, captioned Kissler v. Doximity, Inc., et al., Case No. 4:24-cv-02281-JST was filed in the United States District Court for the Northern District of California. Important Deadline Reminder: Investors who purchased or otherwise acquired Doximity common stock during the Class Period may, no later than June 17, 2024, move the Court to serve as lead plaintiff for the class. CLICK HERE TO SUBMIT YOUR DOXIMITY LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/doximity-inc?utm_source=PR&utm_medium=link&utm_campaign=docs&mktm=r CANNOT VIEW THIS VIDEO? PLEASE CLICK HERE. YOU CAN ALSO CLICK ON THE FOLLOWING LINK TO COPY AND PASTE IN YOUR BROWSER: https://youtu.be/sbkgMGltWR8 LEAD PLAINTIFF DEADLINE: JUNE 17, 2024 CLASS PERIOD: FEBRUARY 9, 2022, THROUGH APRIL 1, 2024 CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS: Jonathan Naji, Esq. (484) 270-1453 or Email at info@ktmc.com DEFENDANTS' MISCONDUCT Throughout the Class Period, Defendants continued to tout the sustainability of the Company's business prospects while also downplaying the importance of customer upsell rates on the Company's financial performance. Notwithstanding Defendants' repeated claims regarding the sustainability of Doximity's growth and profitability, investors began to learn the truth about the Company on August 8, 2023, when, after the market closed, Doximity reported its financial results for the first quarter of fiscal year 2024, which ended June 30, 2023. While the Company exceeded its quarterly revenue and adjusted EBITDA guidance for the first quarter, the Company provided disappointing guidance for the second quarter of fiscal year 2024 and slashed its guidance for the full fiscal year 2024. In conjunction with the disappointing guidance, Doximity announced that it would reduce its workforce by approximately 10%. The Company further noted that the workforce reduction is expected to cost approximately $8 million to $10 million. In explaining this about-face, Defendant Bryson admitted that the Company's "major upsells have materially underperformed, and we expect this to continue in the near term." Defendant Tangney further explained that Doximity failed to close sales due, in part, to "fewer face-to-face meetings with our clients." On this news, the price of Doximity common stock declined $7.49 per share, or nearly 23%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023. Investors learned more about the unsustainability of the Company's revenue growth on April 1, 2024, when Jehoshaphat Research published a report alleging, among other things, that "Doximity's underlying sales . . . are declining at a negative -3-6% rate, but that this decline has been masked through accelerated revenue recognition." On this news, the price of Doximity common stock declined $1.11 per share, or more than 4% over two trading-days, from a close of $26.91 per share on March 28, 2024, to close at $25.80 per share on April 2, 2024. WHAT CAN I DO? CLICK HERE TO SIGN UP FOR THE CASE WHO CAN BE A LEAD PLAINTIFF? ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com. CONTACT: SOURCE Kessler Topaz Meltzer & Check, LLP | ||
Company Codes: NYSE:DOCS |