Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against DigitalOcean Holdings, Inc. (“Digital Ocean” or “the Company”) (NASDAQ: DOCN) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired DigitalOcean securities from February 16, 2023 through August 25, 2023 (the “Class Period”). Investors who acquired DigitalOcean securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is November 13, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased DigitalOcean securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST DIGITALOCEAN HOLDINGS, INC.
After the market closed on August 3, 2023, DigitalOcean Holdings announced quarterly financial results and disclosed that the Company’s previously issued financial statements for the period ending March 31, 2023 should no longer be relied on due to accounting errors that resulted in an overstatement of the Company’s income tax expense in the quarter of approximately $18 million. As a result of the errors, the Company would be restating its first quarter 2023 financials and announced that the restatement would “also include disclosure of an identified material weakness and that our disclosure controls and procedures were not effective as of March 31, 2023.” On this news, DigitalOcean’s stock price dropped approximately 24.8% in intraday trading the following day on August 4, 2023. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants misled investors by failing to disclose that: (1) Defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company’s accounting for income taxes; and (2) that as a result of the foregoing, Defendants’ financial statements were inaccurate and materially misleading.
ABOUT DIGITALOCEAN HOLDINGS, INC.
- DigitalOcean Holdings, Inc. is a cloud infrastructure provider that offers cloud computing services to developers, startups, and businesses. It was founded in 2011 by Ben Uretsky, Moisey Uretsky, Jeff Carr, Alec Hartman, and Mitch Wainer. The company is headquartered in New York City, USA.
- DigitalOcean is known for its simplicity and developer-friendly approach to cloud computing. It primarily caters to small and medium-sized businesses, providing them with the tools and services they need to deploy, manage, and scale applications in the cloud. Some of the key features and services offered by DigitalOcean include:
- Droplets: These are DigitalOcean’s virtual private servers (VPS), which users can quickly deploy to run applications and websites. Droplets come in various sizes and configurations to meet different performance and resource requirements.
- Kubernetes: DigitalOcean provides a managed Kubernetes service, making it easier for users to deploy and manage containerized applications using Kubernetes orchestration.
- Managed Databases: Users can provision and manage databases like PostgreSQL, MySQL, and Redis without the operational overhead.
- App Platform: DigitalOcean’s App Platform is a platform-as-a-service (PaaS) offering that simplifies the deployment and scaling of web applications. Developers can deploy code from repositories and get automatic scaling and load balancing.
- Developer Tools: DigitalOcean offers various developer-focused tools, including an API, CLI, and extensive documentation to streamline the development and deployment process.
- DigitalOcean has gained popularity among developers and startups due to its straightforward pricing model, ease of use, and a strong community presence. The company went public in March 2021, trading on the New York Stock Exchange (NYSE) under the ticker symbol “DOCN.”
JOIN THIS CASE AGAINST DIGITALOCEANS HOLDINGS, INC.
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in DigitalOcean during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is November 13, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against DigitalOcean are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
