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Business Wire 18-Sep-2023 1:10 PM
The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired DigitalOcean Holdings, Inc. ("DigitalOcean" or the "Company") (NYSE:DOCN) securities between February 16, 2023 and August 25, 2023, inclusive (the "Class Period"). DigitalOcean investors have until November 13, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On August 3, 2023, DigitalOcean disclosed that it "identified certain errors within the unaudited condensed consolidated financial statements for the quarter ended March 31, 2023 as included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023 filed on May 9, 2023" related to the Company's accounting for income tax expense. The Company claimed the errors resulted in an $18 million overstatement of the Company's income tax expense. The Company further disclosed that the material weakness in its internal controls that caused the error traced back to, at latest, December 31, 2022, rendering its Annual Report for the previous year inaccurate as well. On this news, DigitalOcean's stock price fell $11.57, or 24.8%, to close at $35.11 per share on August 4, 2023, thereby injuring investors.
Then, on August 24, 2023, DigitalOcean announced that its CEO was stepping down. On this news, DigitalOcean's stock price fell $2.65, or 8.4%, to close at $28.86 per share on August 25, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company's accounting for income taxes; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased DigitalOcean securities during the Class Period, you may move the Court no later than November 13, 2023, to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased DigitalOcean securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.