| COMPANY |
CS Disco, Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
23-cv-08270 |
| JUDGE |
The Hon. Lewis A. Kaplan |
| CLASS PERIOD |
July 21, 2021 and August 11, 2022 |
| SECURITY TYPE |
Common Stock |
CS Disco 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 November 20, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired CS Disco, Inc. (“CS Disco”) (NYSE: LAW) common stock between July 21, 2021 and August 11, 2022, both dates inclusive (the “Class Period”).
Case Background:
On August 11, 2022, CS Disco announced financial results for the second quarter of 2022, in which revenue growth had tapered drastically over past quarters. In the results, CS Disco indicated that the company would no longer be including in its guidance any revenues attributable to its largest customers for the entire year.
During an investors call following the earnings release, CS Disco’s CEO denied that CS Disco's declines in revenue were the result of losing any major customers. Following these disclosures, the price of CS Disco stock declined $15.53, or more than 53%, on August 12, 2022.
The complaint alleges that, throughout the Class Period, Defendants repeatedly touted strong growth in their revenues attributable to customer usage of its cloud-based electronic discovery platform and asserted that it had good advance visibility into changes in the demand from individual customers over time. The lawsuit also alleges that "[w]hile the Company also acknowledged that its rapid revenue growth was 'usage driven' and may be subject to volatility, it did not inform investors during the Class Period that it had any indication of significant headwinds to its growth." When the true details entered the market, the complaint claims that investors suffered damages.
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: Jonathan Naji, 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.