DocuSign, Inc. (DOCU) Made Material Misstatements Regarding its Business Prospects
A class action was filed on behalf of all persons and entities that purchased DocuSign, Inc. (NASDAQ: DOCU) securities between March 27, 2020 and December 2, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. DocuSign offers the Agreement Cloud, a cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device.
According to the complaint, during the class period, defendants failed to disclose the role the COVID-19 pandemic had on its growth, including the positive impact on DocuSign’s business. Defendants also downplayed the impact that a ‘return to normal’ would have on the Company’s growth and business.
On December 2, 2021, DocuSign held an earnings conference call for its third quarter fiscal year 2022, revealing that its anticipated growth for the fourth quarter 2022 would be lower than expected. The Company explained that the growth boost from the COVID-19 pandemic had deteriorated earlier than expected. In a press release issued the same day, DocuSign provided guidance for the fourth quarter fiscal year 2022. The guidance provided midpoint revenue guidance of $560 million, missing analysts’ consensus estimates of $573.8 million and a billing guidance of $653 million, missing consensus estimates of $704.5 million. On this news, DocuSign’s stock price plummeted $98.73 per share, or over 42%, to close at $135.09 per share on December 3, 2021.
If you purchased shares of DocuSign, Inc. (DOCU) between March 27, 2020 and December 2, 2021, you have until February 22, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.