Doximity, Inc. Class Action Lawsuit - DOCS
Case Summary
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The Doximity class action lawsuit seeks to represent purchasers or acquirers of Doximity, Inc. (NYSE: DOCS) common stock between February 9, 2022 and April 1, 2024, inclusive (the “Class Period”). Captioned Kissler v. Doximity, Inc., No. 24-cv-02281 (N.D. Cal.), the Doximity class action lawsuit charges Doximity and certain of Doximity’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Doximity class action lawsuit, please provide your information in the form on this page. You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Doximity class action lawsuit must be filed with the court no later than June 17, 2024.
CASE ALLEGATIONS: Doximity operates a digital platform that provides connections between, medical information to, and patient scheduling tools for medical professionals.
The Doximity class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that defendants repeatedly touted Doximity’s business prospects and the sustainability of Doximity’s revenue growth and profitability, while downplaying the impact of competition and tightening macroeconomic conditions on Doximity as well as its reliance on “upselling” products and services (such as additional advertising) to existing customers to sustain Doximity’s performance and future growth.
The Doximity class action lawsuit further alleges that on August 8, 2023, Doximity 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, and representing year-over-year revenue growth of 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, and representing year-over-year adjusted EBITDA growth of between 4.9% and 13.6%). On this news, the price of Doximity common stock fell nearly 23%, according to the complaint.
Then, on April 1, 2024, the complaint further alleges that Jehoshaphat Research published a report alleging, among other things, that Doximity’s revenue growth “has been primarily driven by pulling forward revenues from the future, rather than by [sustainable,] underlying business growth” and that “Doximity has been recognizing previously-deferred revenues earlier and earlier within any given period” as a means to drive reported revenue growth. On this news, the price of Doximity common stock fell, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Doximity common stock during the Class Period to seek appointment as lead plaintiff in the Doximity class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Doximity class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Doximity class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Doximity class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm was ranked #1 on the ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller topped the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.