BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS) common stock between February 9, 2022, and April 1, 2024, inclusive (the “Class Period”). Doximity investors have until June 17, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Doximity investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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%, and 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 Doximity 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
