Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Nov. 07, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN) investors that a lawsuit filed on behalf of investors that purchased DigitalOcean securities between February 16, 2023 and August 25, 2023, inclusive (the “Class Period”)
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
According to the allegations in the Complaint, DigitalOcean is categorized as an emerging growth company, and it claims to provide a cloud computing platform primarily tailored for small to medium-sized businesses lacking the necessary resources to maintain on-premise software development environments. DigitalOcean's customer base utilizes its platform for various purposes, including the development of web and mobile applications, website hosting, and e-commerce, among other uses.
On August 3, 2023, DigitalOcean made an announcement stating that it had "discovered specific errors within the unaudited condensed consolidated financial statements for the quarter ended March 31, 2023, as presented in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023, filed on May 9, 2023." These errors pertained to the company's accounting for income tax expenses, resulting in an overstatement of income tax expenses for the quarter, amounting to approximately $18 million. The company also disclosed that it would be revising its financial statements for the first quarter of 2023 and that this revision would include the acknowledgment of a significant weakness in internal controls, indicating that its disclosure controls and procedures were not effective as of March 31, 2023.
Subsequently, on August 24, 2023, DigitalOcean issued a press release announcing that the Board of Directors had initiated a search for a new CEO to replace Defendant Yancy Spruill. Spruill would resign as CEO and as a board member upon the appointment of his successor.
Following this news, DigitalOcean's stock price experienced a decline of $2.65 per share, representing an approximate 8.4% decrease, ultimately closing at $28.86 per share on August 25, 2023.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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