Digital Turbine, Inc. (APPS) to Restate its Financial Statements for Fiscal 2022
A shareholder filed a class action on behalf of all persons or entities that purchased or otherwise acquired Digital Turbine, Inc. (NASDAQ: APPS) securities between August 9, 2021 and May 17, 2022, for violations of the Securities Exchange Act of 1934. Digital Turbine is a software company that delivers products to assist third parties in monetizing through the initialization of mobile advertising.
According to the complaint, the Company completed the acquisitions of AdColony Holdings AS (“AdColony”) and Fyber N.V. (“Fyber”) on April 29 and May 25, 2021, respectively.
During the class period, defendants failed to disclose to investors that the Company’s recent acquisitions act as agents in certain of their respective product lines, and as such, revenues for those product lines must be reported net of license fees and revenue share, rather than on a gross basis. However, the Company’s internal control over financial reporting as to revenue recognition was deficient, and as a result, the Company’s net revenues was overstated throughout fiscal 2022.
On May 17, 2022, Digital Turbine issued a press release revealing that it will “restate its financial statements for the interim periods ended June 30, 2021, September 30, 2021, and December 31, 2021, following a review of the presentation of revenue net of license fees and revenue share for the Company’s recently acquired businesses.” On this news, the Company’s shares fell $1.93, or 7.1%, to close at $25.28 per share on May 18, 2022, on unusually heavy trading volume.
Next Steps: If you acquired shares of Digital Turbine, Inc. securities between August 9, 2021 and May 17, 2022, you have until August 5, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.