NEW YORK, Sept. 13, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN) securities between February 16, 2023 and August 25, 2023, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
The Complaint alleges that on August 3, 2023, the Company announced that it had “identified certain errors within the unaudited condensed financial statements for the quarter ended March 31, 2023 as included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023 filed on May 9, 2023” related to the Company’s accounting for income tax expense, resulting in an overstatement of income tax expense in the quarter of approximately $18 million. On this news, the price of the Company stock fell nearly 25%. The Complaint also alleges that on August 24, 2023, the Company announced that its Board of Directors had begun a search for a new CEO to replace defendant Yancey Spruill who would step down as CEO and board member as soon as his successor was appointed. On this news, the price of the Company stock fell more than 8%.
Investors who purchased or otherwise acquired shares of DigitalOcean should contact the Firm prior to the November 13, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
