Doximity(US:DOCS) GlobeNewswire News Roomยท2024-06-05 15:25Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Doximity, Inc. due to allegations of violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by June 17, 2024 [1][4]. Summary by Sections Company Overview - Doximity, Inc. is a publicly traded company on the NYSE under the ticker DOCS [1]. Allegations and Financial Performance - The complaint alleges that Doximity and its executives made false or misleading statements regarding the sustainability of the company's business prospects and downplayed the importance of customer upsell rates [4]. - On August 8, 2023, Doximity reported its Q1 fiscal year 2024 results, exceeding revenue and adjusted EBITDA guidance but providing disappointing guidance for Q2 and slashing full-year guidance, alongside a workforce reduction of approximately 10% expected to cost $8 million to $10 million [4]. - Doximity's executives admitted that major upsells had materially underperformed, attributing sales failures to fewer face-to-face meetings with clients [5]. Stock Price Impact - Following the August 8, 2023 announcement, Doximity's stock price fell by $7.49, or nearly 23%, from $32.79 to $25.30 per share [5]. - On April 1, 2024, a report from Jehoshaphat Research indicated that Doximity's underlying sales were declining at a rate of -3% to -6%, leading to a further decline in stock price by $1.11, or over 4%, from $26.91 to $25.80 per share [6]. Legal Proceedings - The lead plaintiff in the class action will be the investor with the largest financial interest who is adequate and typical of class members [7]. - Faruqi & Faruqi encourages anyone with information regarding Doximity's conduct to come forward, including whistleblowers and former employees [8].