Doximity(US:DOCS) Prnewswireยท2024-06-06 14:05Core 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]. Group 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]. - Doximity reported its first-quarter fiscal year 2024 results on August 8, 2023, exceeding revenue and adjusted EBITDA guidance but provided disappointing guidance for the second quarter and slashed its full-year guidance, alongside announcing a workforce reduction of approximately 10% [4]. - Following the disappointing guidance, Doximity's stock price fell by $7.49, nearly 23%, from $32.79 to $25.30 per share on August 9, 2023 [5]. Group 2: Revenue Decline and Market Reaction - On April 1, 2024, Jehoshaphat Research published a report indicating that Doximity's underlying sales were declining at a rate of -3% to -6%, which was masked by accelerated revenue recognition [6]. - This revelation led to a decline in Doximity's stock price by $1.11, over 4%, from $26.91 to $25.80 per share between March 28 and April 2, 2024 [6]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses exceeding $100,000 between February 9, 2022, and April 1, 2024, are encouraged to contact Faruqi & Faruqi to discuss their legal rights [2]. - The court-appointed lead plaintiff will be the investor with the largest financial interest who is typical of class members, and any member may move to serve as lead plaintiff or remain an absent class member [7]. - Faruqi & Faruqi is also seeking information from whistleblowers, former employees, and shareholders regarding Doximity's conduct [8].