A securities fraud class action lawsuit has been filed against Doximity, Inc. – Contact: Kessler Topaz Meltzer & Check, LLP

RADNOR, PA / ACCESSWIRE / May 26, 2024 / The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that the Firm has filed a securities fraud class action lawsuit against Doximity, Inc. (NYSE:DOCS) (“Doximity” or the “Company”) on behalf of investors who purchased or acquired shares of Doximity common stock between February 9, 2022 and April 1, 2024, inclusive (the “Class Period”). This lawsuit, entitled Kissler v. Doximity, Inc. et al.Case No. 3:24-cv-02281-JST was filed in the U.S. District Court for the Northern District of California.

Important Deadline Reminder: Investors who purchased or otherwise acquired shares of Doximity common stock during the Class Period may move the Court to appoint them as lead plaintiff for the class action no later than June 17, 2024.

If you have suffered Doximity losses, you can CLICK HERE or go to: https://www.ktmc.com/new-cases/doximity-inc?utm_source=PR&utm_medium=link&utm_campaign=docs&mktm=r

You can also contact a lawyer Jonathan Naji, Esq. from Kessler Topaz by phone at (484) 270-1453 or by email at (email protected).

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Misconduct of the defendant

Doximity operates a digital platform that connects healthcare professionals with medical information and provides them with patient scheduling tools. The class action lawsuit begins on February 9, 2022, following the release of Doximity’s quarterly results for its third quarter of fiscal 2022, which ended on December 31, 2021, after the market closed the previous evening. During the quarterly investor conference call on February 8, 2022, Defendant Anna Bryson, the Company’s Chief Financial Officer, emphasized that “marketers have been able to see the value of running these digital programs” and that this “value is the primary reason we are seeing this continued demand from our customers, not new (COVID) variants.” To that end, Defendant Bryson also assured investors that the Company is “focused on … really building a business that can provide years of sustainable, high-margin growth.”

Throughout the Class Period, Defendants continued to tout the sustainability of the Company’s business prospects while downplaying the importance of customer upsell rates to the Company’s financial performance. Despite Defendants’ repeated claims regarding the sustainability of Doximity’s growth and profitability, investors learned the truth about the Company on August 8, 2023, when Doximity reported its financial results for the first quarter of fiscal 2024, ended June 30, 2023, after the market closed. While the Company beat its quarterly guidance for revenue and Adjusted EBITDA for the first quarter, it provided disappointing guidance for the second quarter of fiscal 2024 and cut its guidance for the full fiscal 2024. In conjunction with the disappointing guidance, Doximity announced it would reduce its workforce by approximately 10%. The Company further indicated that the workforce reductions are expected to cost approximately $8 million to $10 million.

In explaining this turnaround, Defendant Bryson admitted that the Company’s “major upsells have fallen significantly short of expectations and we expect this to continue in the near future.” Defendant Tangney further stated that Doximity was unable to close sales due in part to “fewer face-to-face meetings with our customers.” Following this news, the price of Doximity’s common stock declined $7.49 per share, or nearly 23%, from a closing price of $32.79 per share on August 8, 2023, to $25.30 per share on August 9, 2023.

Investors learned more about the unsustainability of the company’s revenue growth on April 1, 2024, when Jehoshaphat Research published a report claiming, among other things, that “Doximity’s underlying revenues… decreasing at a negative rate of -3-6%, but this decline was masked by accelerated revenue recognition.” Following this news, the price of Doximity’s common stock declined $1.11 per share, or more than 4%, over two trading days, from a closing price of $26.91 per share on March 28, 2024 to a closing price of $25.80 per share on April 2, 2024.

WHAT CAN I DO?

Doximity Investors can by 17 June 2024 at the latest, the court through Kessler Topaz Meltzer & Check, LLP or other counsel to serve as lead plaintiff for the class, or elect to take no action and remain absent as a class member. Kessler Topaz Meltzer & Check, LLP recommends that Doximity investors who have suffered significant losses contact the firm directly for more information.

CLICK HERE TO REGISTER FOR THE CASE, GO TO: https://www.ktmc.com/new-cases/doximity-inc?utm_source=PR&utm_medium=link&utm_campaign=docs&mktm=r

WHO CAN BE THE MAIN CAMP?

A lead plaintiff is a representative party acting on behalf of all class members in directing the litigation. The lead plaintiff is typically the investor or small group of investors who have the largest financial interest and who are also appropriate and typical of the proposed investor class. The lead plaintiff selects counsel to represent the lead plaintiff and the class, and those attorneys, if approved by the court, are lead or class counsel. Your ability to share in any compensation will not be affected by the decision whether or not to serve as lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP

Kessler Topaz Meltzer & Check, LLP litigates class action lawsuits in state and federal courts across the country and around the world. The firm has built a strong reputation around the world, recovering 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 corporate and fiduciary fraud, abuse, misconduct and negligence.

For more information about Kessler Topaz Meltzer & Check, LLP, visit www.ktmc.com.

CONTACT

Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Street
Radnor, PA 19087
(844) 887-9500 (toll free)
(email protected)

May be considered Attorney Advertising in certain jurisdictions. Past results are not a guarantee of future results.

SOURCE: Kessler Topaz Meltzer & Check, LLP