NEW YORK, NY / ACCESSWIRE / February 16, 2024 / Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Amplitude, Inc. ("Amplitude" or "the Company") (NASDAQ:AMPL) and certain of its officers.
Class Definition:
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Amplitude securities between September 21, 2021 and February 16, 2022, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/AMPL.
Case Details:
Amplitude is a technology company that helps businesses analyze data for their digital products and track customer interactions.
The Complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Amplitude's land-and-expand strategy was years away from significantly accelerating revenues among its newer client cohorts; and (2) the rapid acceleration in Amplitude's second quarter of 2021 results resulted from the ephemeral effects of the COVID-19 pandemic which had not continued by the start of the Class Period, as Amplitude clients were expanding at a slower pace.
Beginning in September 2021, Amplitude claimed to be experiencing extraordinary growth due to "strong demand for [its products]" and a "robust" expansion from existing customers. Specifically, in connection with the Company's second quarter 2021 ("2Q21") earnings, Amplitude reported that "revenue growth accelerated" during the quarter and was "up 66% year over year." The Company similarly reported that a key growth metric, known as current remaining performance obligations ("cRPO"), was up 76% year-over-
year and that its dollar-based net retention rate ("NRR") was 119%.
Capitalizing on their rosy assessments and reassurances regarding Amplitude's rapid growth trajectory and ability to sustain outsized gains through the Company's land-and-expand strategy, in the months following the IPO Amplitude's senior management and Company insiders cashed out more than $275 million in Amplitude stock at artificially inflated prices, including more than $30 million by CEO Skates and more than $17 million by CFO Vuong at prices as high as $74 per share.
Almost immediately after this insider selling spree ended, Amplitude's high-flying stock price crashed back to reality. After the market closed on February 16, 2022, Amplitude revealed its fourth quarter 2021 ("4Q21") results and revised downward its 2022 fiscal guidance.
Most troubling, the Company revealed that its vaunted land-and-expand strategy, which defendants had claimed had already proven successful, was in fact poised to "take a few years" before it was expected to accelerate results and that despite their prior assurances of sustainable growth, Amplitude management "really [did not] know" when this impact would occur. Following this news, the price of Amplitude common stock plunged. After closing at $41.61 per share on February 16, 2022, the stock dropped more than 58% - or $24.51 per share - to close at $17.10 per share on February 17, 2022, on unusually high trading volume of more than 20 million shares traded.
As a result of defendants' wrongful acts and omissions, and the subsequent declines in the market value of Amplitude stock, which dropped nearly 80% from its Class Period peak, shareholders suffered losses and damages.
What's Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/AMPL or you may contact Peretz Bronstein, Esq. or his Law Clerk and Client Relations Manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Amplitude you have until April 15, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
View the original
press release on accesswire.com
