SAN FRANCISCO, CA / ACCESSWIRE / May 16, 2024 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Doximity, Inc. ("Doximity" or the "Company") (NYSE:DOCS) who suffered losses from purchasing or otherwise acquiring Doximity common stock between February 9, 2022, and April 1, 2024, inclusive (the "Class Period"), to contact us immediately regarding a pending securities fraud class action against Doximity. The deadline to apply to be lead plaintiff is June 17, 2024.
Class Period: February 9, 2022 - April 1, 2024
Lead Plaintiff Motion Deadline: June 17, 2024
Case information:lieffcabraser.com/securities/doximity
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358
Doximity operates a digital platform that provides connections between medical professionals and service providers. The Company primarily generates revenue from selling subscriptions to various marketing "modules" to customers such as health systems and pharmaceutical companies that can promote their services and products to platform users.
A pending securities fraud class action alleges that, throughout the Class Period, Doximity overstated its business prospects while downplaying its reliance on "upselling" (meaning selling additional modules or services) to their existing customers.
On August 8, 2023, after the market closed, Doximity reported its financial results for the first quarter of fiscal year 2024, which ended on June 30, 2023, and significantly reduced its guidance for the second quarter and full fiscal year 2024. During the Company's earnings call held later that day, Doximity's Co-Founder and Chief Executive Officer, defendant Jeffrey Tangney, revealed that, "our upsell close rate fell short in June and July" and, "after growing steadily for a decade, our upsells have now slowed for 2 years in a row." Tangney also announced that the Company was laying off 10% of its workforce. On this news, the price of Doximity common stock declined $7.49 per share, or 22.8%, 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 report alleging that "Doximity's underlying sales . . . are declining at a negative -3-6% rate, but that this decline has been masked through accelerated revenue recognition." The report further claimed that "Doximity has been recognizing previously-deferred revenues earlier and earlier within any given period" as a method of driving reported revenue growth. On this news, the price of Doximity common stock declined $0.50 per share, or 1.9%, from a close of $26.91 per share on March 28, 2024, to close at $26.41 per share the next trading day, April 1, 2024. The price continued to decline the next day.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
CONTACT
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com
SOURCE: Lieff Cabraser Heimann & Bernstein
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