The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed against DocuSign, Inc.
The action charges DocuSign with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of DocuSign’s materially misleading statements to the public, DocuSign investors have suffered significant losses.
LEAD PLAINTIFF DEADLINE: February 22, 2022
CLASS PERIOD: March 27, 2020 through December 2, 2021
DOCUSIGN’S ALLEGED MISCONDUCT
DocuSign provides cloud based software in the United States and internationally. Specifically, DocuSign offers e-signature solutions that enables businesses to digitally prepare, sign, act on, and manage agreements.
Beginning on March 27, 2020 and throughout the Class Period, DocuSign touted its growth and continued strong demand. As recently as September 2, 2021 earnings call, DocuSign touted its billings and revenue growth, including, among other things, assuring investors that the company continued to see strong early renewals and expansions of existing customers that DocuSign had visibility into and tracked, and that DocuSign did not see significant slowdown in its business.
Then, on December 2, 2021, after the market closed, DocuSign announced that it sustained a significant deceleration in billings growth and disappointing year-end projections for billings and revenue. According to DocuSign, “After six quarters of accelerated growth, [DocuSign] saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth.” Following this news, DocuSign’s stock price fell $98.73 per share, or 42%, to close at $135.09 per share on December 3, 2021.
WHAT CAN I DO?
DocuSign investors may, no later than February 22, 2022, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages DocuSign investors who have suffered significant losses to contact the firm directly to acquire more information.
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
