Doximity, Inc. Securities Class Action Litigation

Introduction

Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired common stock of Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS) between February 9, 2022, and April 1, 2024, inclusive (the “Class Period”).

If you purchased Doximity common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than June 17, 2024.

A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Doximity investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Lieff Cabraser partner Sharon M. Lee at 1-800-541-7358.

Background on the Doximity Securities Class Litigation

Doximity operates a digital platform that provides connections between medical professionals and service providers. The Company primarily generates revenue from selling subscriptions to various marketing “modules” to customers such as health systems and pharmaceutical companies that can promote their services and products to platform users.

A pending securities fraud class action alleges that, throughout the Class Period, Doximity overstated its business prospects while downplaying its reliance on “upselling” (meaning selling additional modules or services) to their existing customers.

On August 8, 2023, after the market closed, Doximity reported its financial results for the first quarter of fiscal year 2024, which ended on June 30, 2023, and significantly reduced its guidance for the second quarter and full fiscal year 2024. During the Company’s earnings call held later that day, Doximity’s Co-Founder and Chief Executive Officer, defendant Jeffrey Tangney, revealed that, “our upsell close rate fell short in June and July” and, “after growing steadily for a decade, our upsells have now slowed for 2 years in a row.” Tangney also announced that the Company was laying off 10% of its workforce. On this news, the price of Doximity common stock declined $7.49 per share, or 22.8%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023.

On April 1, 2024, Jehoshaphat Research published a report alleging that “Doximity’s underlying sales . . . are declining at a negative -3-6% rate, but that this decline has been masked through accelerated revenue recognition.” The report further claimed that “Doximity has been recognizing previously-deferred revenues earlier and earlier within any given period” as a method of driving reported revenue growth. On this news, the price of Doximity common stock declined $0.50 per share, or 1.9%, from a close of $26.91 per share on March 28, 2024, to close at $26.41 per share the next trading day, April 1, 2024. The price continued to decline the next day.

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    My estimated loss from trading in Doximity common stock between February 9, 2022 and April 1, 2024 is:

    0 to $25,000$25,001 - $50,000$50,001 - $100,000Over $100,000

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    Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.