The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired DocuSign, Inc. (“DocuSign” or the “Company”) (NASDAQ: DOCU) securities from March 27, 2020 through December 2, 2021, inclusive (the “Class Period”). Investors have until February 22, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device.
On December 2, 2021, after market hours, DocuSign held an earnings conference call for its third quarter fiscal year 2022 (“3Q 2022 Earnings Call”). During the 3Q 2022 Earnings Call, the Company revealed that its anticipated growth for the fourth quarter of 2022 would be lower than expected. Defendant Springer discussed this slowdown, alleging that the growth boost from the Covid-19 pandemic had deteriorated earlier than expected – a growth boost that the Company did not acknowledge until this point. Also on December 2, 2021, DocuSign published a press release announcing its third-quarter fiscal year 2022 financial results and guidance for the fourth-quarter fiscal year 2022. The guidance provided, in pertinent part, midpoint revenue guidance of $560 million, missing analysts’ consensus estimates of $573.8 million. The guidance also provided a billing guidance of $653 million, missing consensus estimates of $705.4 million. On this news, DocuSign’s stock price declined by $98.73 per share, or approximately 42.22%, from $233.82 per share to close at $135.09 per share on December 3, 2021.
The lawsuit alleges throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose to investors that: (1) the impact of the Covid-19 pandemic on DocuSign’s business was positive, not negative; (2) DocuSign misrepresented the role that the Covid-19 pandemic had on its growth; (3) DocuSign downplayed the impact that a “return to normal” would have on the Company’s growth and business; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.