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DigitalOcean Holdings, Inc.

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN) securities between February 16, 2023 and August 25, 2023, inclusive. The lawsuit seeks to recover DigitalOcean shareholders’ investment losses.

If you purchased securities in DigitalOcean between February 16, 2023 and August 25, 2023, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.

According to the Complaint, DigitalOcean is an emerging growth company which purports to offer a cloud computing platform, primarily for small to medium-sized businesses who lack adequate resources to support on-premise software development environments.  DigitalOcean’s customers use its platform for building web and mobile applications, website hosting, and e-commerce, among other uses.

On August 3, 2023, DigitalOcean announced that it had “identified certain errors within the unaudited condensed consolidated 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.  The Company announced that it would be restating its first quarter 2023 financials and that this 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 August 24, 2023, DigitalOcean issued a press release announcing that the Company’s Board of Directors had begun a search for a new CEO to replace Defendant Yancy Spruill, who would step down as CEO and board member as soon as his successor was appointed.

On this news, DigitalOcean’s stock price declined $2.65 per share, or approximately 8.4%, to close at $28.86 per share on August 25, 2023.

If you wish to serve as lead plaintiff, you must move the Court no later than November 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.

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Contact Information:

Peter Allocco
Bernstein Liebhard LLP
(212) 951-2030