NEW YORK, Dec. 23, 2021 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against DocuSign, Inc. (“DOCU” or the “Company”) (NYSE: DOCU) in the United States District Court for the Eastern District of New York on behalf of investors who purchased or acquired the common stock of DocuSign between March 27, 2020 and December 2, 2021, inclusive (the “Class Period”).
According to the Complaint, Defendants failed to disclose to investors that: specifically, while warning that the Covid-19 pandemic presented a material adverse risk to DocuSign’s prospects, Defendants omitted to disclose that: (1) the impact of the Covid-19 pandemic on DocuSign’s business was actually positive, not negative; (2) DocuSign misrepresented the role that the Covid-19 pandemic had on its growth; (3) DocuSign downplayed the impact that a ‘return to normal’ would have on the Company’s growth and business; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
The truth emerged on December 2, 2021, when DocuSign released disappointing 3Q 2022 results, announcing that it sustained a significant deceleration in billings growth that would continue into Q4 2022. The company blamed the poor results and dismal outlook on “a reduction of that really heightened COVID buying, which drove our growth rates dramatically higher than they had ever been even as we got bigger.”
On this news, DocuSign’s stock price plummeted $98.73 per share, or over 42%, to close at $135.09 per share on December 3, 2021, damaging investors
“We’re focused on investors’ losses and proving DocuSign and its management first saw signs of the company’s billings growth deceleration much earlier,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Investors who purchased or otherwise acquired shares of DocuSign during the Class Period should contact the Firm prior to the February 22, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
