NEW YORK, Sept. 11, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN). Click Here to Join Investigation.
If you acquired DigitalOcean securities and would like to discuss our investigation, please click here or contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
On August 3, 2023, after the market closed, DigitalOcean disclosed errors in some of its previously issued financial statements and a “material weakness in internal control over financial reporting as of December 31, 2022.” Specifically, DigitalOcean disclosed that "there were errors in our accounting for income tax expense primarily relating to the calculation of certain capitalized research or experimental expenditures under Section 174 of the Internal Revenue Code of 1986 which impacted our income tax provision ("Section 174 Error"). Primarily as a result of the Section 174 Error, accrued taxes as of March 31, 2023 were overstated and the income tax expense for the three months ended March 31, 2023 was overstated by approximately $18 million."
Following this news, the price of DigitalOcean shares fell $11.57 per share, or 24.79%, to close at $35.11 on August 4, 2023.
On August 24, 2023, after the market closed, the Company issued a press release announcing a leadership succession plan pursuant to which DigitalOcean was searching for a new Chief Executive Officer and CEO Yancy Spruill will step down as CEO once a new CEO is appointed.
Following this news, the price of DigitalOcean shares fell $2.65 per share, or 8.41%, to close at $28.86 per share on August 25, 2023.
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If you have any questions about this investigation, please contact:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
