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Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Doximity, Inc. (DOCS)
Globe Newswire 11-Jun-2024 11:00 AM
LOS ANGELES, June 11, 2024 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming June 17, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Doximity, Inc. ("Doximity" or the "Company") (NYSE:DOCS) common stock between February 9, 2022, and April1, 2024, inclusive (the "Class Period").
If you suffered a loss on your Doximity investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Doximity-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On August 8, 2023, Doximity released its first quarter fiscal year 2024 financial results and disclosed that it expected fiscal year 2024 revenue of between $452 million and $468 million, down from prior guidance of between $500 million and $506 million, representing year-over-year revenue growth of only between 7.9% and 11.7%. The Company also disclosed that it expected adjusted EBITDA of between $193 million and $209 million, down from prior guidance of between $216 million and $222 million, representing year-over-year adjusted EBITDA growth of only between 4.9% and 13.6%. Additionally, the Company announced that it would be reducing its workforce by approximately 10%, which was expected to cost between $8 million to $10 million.
On this news, Doximity's stock price fell $7.49, or 22.8%, to close at $25.30 per share on August 9, 2023, thereby injuring investors.
Then, on April 1, 2024, 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, Doximity's stock price fell $1.11, or 4.1%, over two consecutive trading days to close at $25.80 per share on April 2, 2024, 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: (1) repeatedly touted the Company's business prospects and the sustainability of the Company's revenue growth and profitability, while downplaying the impact of competition and tightening macroeconomic conditions on the Company and Doximity's reliance on "upselling" products and services (such as additional advertising) to existing customers to sustain the Company's performance and future growth; 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.
If you purchased or otherwise acquired Doximity common stock during the Class Period, you may move the Court no later than June 17, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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