The law firm of Kessler+Topaz+Meltzer+%26amp%3B+Check%2C+LLP (www.ktmc.com) informs investors that the firm has filed a securities class action against DocuSign, Inc. (“DocuSign”) (NASDAQ%3A+DOCU) in the United States District Court for the Northern District of California. This action is captioned Richard R. Weston v. DocuSign, Inc., et al., Case No. 3:22-cv-00824 (the “Weston Action”) and is brought on behalf of investors who purchased or acquired DocuSign securities between June 4, 2020, and December 2, 2021, inclusive (the “Class Period”).
There is another related class action case pending against DocuSign in the United States District Court for the Eastern District of New York. That first-filed action issued a notice of its filing pursuant to the federal securities laws which triggered the deadline of February 22, 2022, for any investors who purchased DocuSign securities to seek to be appointed as a lead plaintiff representative of the class. The filing of the Weston Action does not change the February 22, 2022 lead plaintiff deadline.
%3Cb%3ECLICK+HERE%3C%2Fb%3E TO SUBMIT YOUR DOCUSIGN LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https%3A%2F%2Fwww.ktmc.com%2Fdocusign-class-action-lawsuit%3Futm_source%3DPR%26amp%3Butm_medium%3Dlink%26amp%3Butm_campaign%3Ddocusign
LEAD PLAINTIFF DEADLINE: February 22, 2022
CLASS PERIOD: June 4, 2020 through December 2, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or via email at [email protected]
DOCUSIGN’S ALLEGED MISCONDUCT
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.
WHAT CAN I DO?
DocuSigninvestors may, no later than February 22, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler+Topaz+Meltzer+%26amp%3B+Check%2C+LLP or other counsel, or may choose to do nothing and remain an absent class member Kessler+Topaz+Meltzer+%26amp%3B+Check%2C+LLP encourages DocuSign investors who have suffered significant losses to contact the firm directly to acquire more information.
%3Cb%3ECLICK+HERE%3C%2Fb%3E TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. 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.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler+Topaz+Meltzer+%26amp%3B+Check%2C+LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler+Topaz+Meltzer+%26amp%3B+Check%2C+LLP please visit www.ktmc.com.
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