NEW YORK, Sept. 16, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN) and reminds investors of the November 13, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in DigitalOcean stock or options between February 16, 2023 and August 25, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/DOCN.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants misled investors by failing to disclose that: (1) Defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company’s accounting for income taxes; and (2) that as a result of the foregoing, Defendants’ financial statements were inaccurate and materially misleading.
After the market closed on August 3, 2023, DigitalOcean Holdings announced quarterly financial results and disclosed that the Company’s previously issued financial statements for the period ending March 31, 2023 should no longer be relied on due to accounting errors that resulted in an overstatement of the Company’s income tax expense in the quarter of approximately $18 million. As a result of the errors, the Company would be restating its first quarter 2023 financials and announced that the restatement would “also include disclosure of an identified material weakness and that our disclosure controls and procedures were not effective as of March 31, 2023.”
On this news, DigitalOcean’s stock price dropped approximately 24.8% in intraday trading the following day on August 4, 2023.
On August 24, 2023, DigitalOcean issued a press release announcing that the Company’s Board of Directors had begun a search for a new CEO to replace defendant Spruill, who would step down as CEO and board member as soon as his successor was appointed.
On this news, DigitalOcean’s stock price declined $2.65 per share, or approximately 8.4%, to close at $28.86 per share on August 25, 2023.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding DigitalOcean’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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