Robbins LLP reminds investors that a shareholder filed a class action on behalf of all investors who purchased or otherwise acquired DigitalOcean Holdings, Inc. (NYSE: DOCN) securities between February 16, 2023 and August 25, 2023. DigitalOcean is an emerging growth company, which purports to offer a cloud computing platform, primarily for small to medium sized businesses who lack adequate resources to support on-premise software development environments.
What is this Case About: DitigalOcean Holdings, Inc. (DOCN) Lacked Effective Controls Over the Company's Accounting for Income Taxes
According to the complaint, during the class period, defendants failed to disclose to investors that defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company’s accounting for income taxes, resulting in an overstatement of income tax expense in the quarter of approximately $18 million. As a result, defendants’ financial statements during the class period were inaccurate and materially misleading and would need to be restated.
On this news, DigitalOcean’s stock price declined $11.57 per share, or approximately 24.8%, to close at $35.11 per share on the following trading day, August 4, 2023.
On August 24, 2023, DigitalOcean issued a press release announcing that the Company’s Board of Directors had begun a search for a new CEO to replace defendant Spruill, who would step down as CEO and board member as soon as his successor was appointed. On this news, DigitalOcean’s stock price declined $2.65 per share, or approximately 8.4%, to close at $28.86 per share on August 25, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against DigitalOcean Holdings, Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by November 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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