DocuSign investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than February 22, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit on behalf of those who purchased or acquired DocuSign, Inc. (“DocuSign”) (NASDAQ: DOCU) securities between June 4, 2020 and December 2, 2021, both dates inclusive (the “Class Period”).
Case Background:
DocuSign, a Delaware corporation with principal executive offices in San Francisco, California, offers software that facilitates electronic signatures and agreements. Specifically, in addition to DocuSign’s eSignature services, the DocuSign Agreement Cloud software suite enables users to generate, distribute, and sign agreements, and further offers technological support for, among other things, negotiating agreements and collecting payments after signatures.
The Class Period begins on June 4, 2020, when DocuSign announced its first quarterly financial results reflecting the onset of widespread COVID-19 pandemic mitigation efforts. In connection with that announcement, Defendants assured investors that DocuSign would continue to experience sustained growth in demand for its software even after COVID-19 pandemic restrictions were lifted and repeatedly assured investors of the same throughout the Class Period.
Then, on December 2, 2021, DocuSign revealed that billings of $565 million for the third quarter of fiscal 2022 “fell short of [DocuSign’s] billings guidance, coming in at 28% year-over-year growth” — or roughly half of the prior quarter’s year-over-year growth rate. Additionally, DocuSign’s fourth quarter fiscal 2022 financial guidance missed analysts’ expectations. Specifically, the Defendants explained that, “[w]ith the boost from COVID-19 over the past year and a half, we experienced exceptionally high growth rates” but, “[a]s we move through Q3 and into the second half of the year, we saw demand slow and the urgency of customers’ buying patterns temper.” Following this news, the price of DocuSign common stock fell $98.73 per share, or more than 42%, from a close of $233.82 per share on December 2, 2021, to close at $135.09 per share on December 3, 2021.
The complaint alleges that, throughout the Class Period, the Defendants misrepresented and/or failed to disclose that: (1) much of DocuSign’s accelerated growth in 2020 and early 2021 was attributable to COVID-19 pandemic restrictions rather than a sustainable shift in demand for DocuSign’s services; (2) demand for DocuSign’s services was, in fact, waning as COVID-19 pandemic restrictions were being lifted; and (3) as a result, the Defendants’ statements about DocuSign’s business, operations, and prospects lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.