Doximity(US:DOCS) prnewswire.comยท2024-05-15 22:55Core Viewpoint - A securities fraud class action lawsuit has been filed against Doximity, Inc. by Kessler Topaz Meltzer & Check, LLP on behalf of investors who purchased Doximity common stock between February 9, 2022, and April 1, 2024, due to alleged misleading statements regarding the company's financial health and growth prospects [1][3]. Group 1: Company Background and Allegations - Doximity operates a digital platform that connects medical professionals and provides medical information and patient scheduling tools [3]. - The lawsuit claims that during the Class Period, Doximity's executives made repeated assurances about the sustainability of the company's growth and profitability while downplaying the significance of customer upsell rates [3][4]. - On August 8, 2023, Doximity reported better-than-expected quarterly revenue but provided disappointing guidance for the second quarter and the full fiscal year 2024, leading to a workforce reduction of approximately 10% [3][4]. Group 2: Financial Impact and Stock Performance - Following the August 8, 2023 announcement, Doximity's stock price fell by $7.49 per share, nearly 23%, from $32.79 to $25.30 [4]. - On April 1, 2024, a report from Jehoshaphat Research indicated that Doximity's underlying sales were declining at a rate of -3% to -6%, which was previously obscured by accelerated revenue recognition [5]. - This revelation caused Doximity's stock to decline by $1.11 per share, over two trading days, from $26.91 to $25.80 [5].