Amplitude (AMPL) Slower Expansion 2022 Stock Crash Case

N.D. California

Court

3:24-cv-00898

Case number

09/21/2021

Class period Start

02/16/2022

Class period End

04/15/2024

Lead Plaintiff motion deadline

$AMPL investor filed an initial claim vs. Amplitude and Seniors for overstating the Company's perspectives during and soon after its IPO in 2021, which led to shareholder losses. 
In February 2022, news about slower expansion caused $AMPL to fall 58%, losing over $2B+ in shareholder value. 
On February 16, 2022, Amplitude (AMPL) released weak Q4 2021 results and cut its 2022 guidance. 

Amplitude revealed that its vaunted land-and-expand strategy, which its leaders had claimed had already proven successful, was poised to “take a few years” before it was expected to accelerate results. The management “really did not know” when this impact would occur. 

On this news, $AMPL plunged 58% and lost over $2 billion of its market capitalization, seriously damaging shareholders.
In September 2021, Amplitude successfully conducted its IPO with its executive stating rapid growth trajectory  
While reassuring investors of Amplitude’s ability to sustain outsized gains through its land-and-expand strategy, in the months following the IPO Amplitude’s senior management and insiders cashed out over $275 million in $AMPL at inflated prices, including $30+ million by its CEO and $17+ million by its CFO.
Currently, $AMPL trades at less than $15 per share, more than 80% below its 2021 highs. The weakness in its land-and-expand strategy is keeping the stock price depressed. 

The first investor already filed a claim against Amplitude and its seniors for overstating the Company's perspectives during and soon after the IPO, which led consequently to shareholder losses.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/17/2022

Filing date

02/14/2024

Lead Plaintiff Deadline

04/15/2024

Amplitude (AMPL) Slower Expansion 2022 Stock Crash Case

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