SAN DIEGO, April 24, 2024 (GLOBE NEWSWIRE) -- DiCello Levitt LLP announces that purchasers or acquirers of Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS) common stock between February 9, 2022 and April 1, 2024, inclusive (the “Class Period”) have until June 17, 2024 to seek appointment as lead plaintiff of the Doximity class action lawsuit. The Doximity lawsuit charges the Company and certain senior executive officers with violations of the federal securities laws.
If you purchased shares of Doximity common stock between February 9, 2022 and April 1, 2024, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/doximity/
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Case Allegations: Doximity provides a cloud-based, digital platform and tools for U.S. medical professionals, which purports to help them collaborate with colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with medical news and research, and manage careers.
The Doximity lawsuit alleges that, throughout the Class Period, Defendants 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 its reliance on “upselling” products and services (such as additional advertising) to existing customers to sustain its performance and future growth.
On August 8, 2023, after the market closed, the Company reported its financial results for the first quarter of fiscal year 2024, which ended on June 30, 2023. While the Company exceeded its quarterly revenue and adjusted EBITDA guidance for the first quarter, the Company provided disappointing guidance for the second quarter of fiscal year 2024 and slashed its guidance for the full fiscal year 2024. On this news, the price of Doximity common stock declined $7.49 per share, or nearly 23%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023.
On April 1, 2024, Jehoshaphat Research published a research 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, the price of Doximity common stock declined $1.11 per share, or more than 4% over two trading days, from a close of $26.91 per share on March 28, 2024, to close at $25.80 per share on April 2, 2024.
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