DocuSign (DOCU) Growth Misstatements Case

N.D. California

Court

3:22-cv-00824

Case number

06/04/2020

Class period Start

06/09/2022

Class period End

$DOCU stockholders filed a claim against DocuSign for overstating the sustainability of its COVID-19-driven growth.
After multiple disappointing earnings reports between December 2021 and June 2022, $DOCU dropped by over 80%.
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Case Details:

During the COVID-19 pandemic, DocuSign experienced a surge in demand for its eSignature products, which it said would lead to lasting growth.

Executives assured investors that customers would maintain digital workflows after the pandemic, boosting subscription renewals and revenue.

On December 2, 2021, DocuSign reported disappointing earnings, revealing that billings growth had slowed sharply as the pandemic waned.

This announcement caused $DOCU to plummet by 42% in a single day.

Two subsequent earnings reports in 2022 confirmed the slowdown, causing further stock declines and significant financial losses for shareholders.

Based on these events, $DOCU stockholders filed a claim accusing the company of the following:
It misled investors about the long-term sustainability of its pandemic-driven growth.
It ignored internal metrics and customer feedback signaling a post-pandemic demand decline.
It provided overly optimistic revenue and billing forecasts, despite knowing the risks.
Investors believe that DocuSign misled them by overstating its growth prospects and downplaying the temporary nature of its pandemic surge.

Case Status

Case Discovery

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

12/02/2021

Filing date

02/08/2022

Judge

William H. Orrick

DocuSign (DOCU) Growth Misstatements Case

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