Digital Turbine, Inc.

Investigation
05/17/2022

Initial Lawsuit
06/06/2022

Lawsuit Progression
08/05/2022

Investigation

Continous Holding
August 9, 2022 to May 17, 2022
Proposed Claim
Securities Violation

Investors investigation in connection with Digital Turbine, Inc.’s internal controls over financial reporting and restatement of its financials for the periods ended June 30, 2021, September 30, 2021, and December 31, 2021.

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Restatement

05/17/2022

SEC Filing

Digital Turbine announces that its Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC) on August 9, 2021, November 2, 2021, and February 8, 2022, should no longer be relied upon. The company also reveals its expected net revenues, substantially lower than previously reported “gross” revenues.

“In connection with the integration of the Company’s recently acquired businesses (AdColony Holding AS and Fyber N.V. (the “Acquired Companies”)), management performed a review of the presentation of revenues and license fees and revenue share based on the accounting guidance for revenue recognition, including considerations of principal and agent (or “gross and net”) presentation. After a detailed review of the Acquired Companies product lines and related contracts with customers and publishers, the Company concluded that each Acquired Company acts as an agent in certain of their respective product lines and, as a result, the revenues for those product lines should be reported net of license fees and revenue share. Previously, all revenues of the Acquired Companies, which are reported as separate segments referred to as In App Media – AdColony and In App Media – Fyber, respectively, were reported on a gross basis.”

“Previously, the Company’s revenues were reported as approximately $212.6 million for the three-month period ended June 30, 2021, $310.2 million for the three-month period ended September 30, 2021, and $375.5 million for the three-month period ended December 31, 2021. Based on its preliminary assessment, the Company expects that revenue on a net basis will be reported as approximately $158.1 million for the three-month period ended June 30, 2021, $188.6 million for the three-month period ended September 30, 2021, and $216.8 million for the three-month period ended December 31, 2021.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$25.28	$27.21	$-1.93	-7.09%

See more on Factual Timeline

Initial Lawsuit

A shareholder filed this securities class action on behalf of persons and entities that purchased or otherwise acquired Digital Turbine securities between August 9, 2021, and May 17, 2022, inclusive.

Filing Date
06/06/2022
Class Period
08/09/2021 to 05/17/2022
Transgression
Securities Violation
Filing Firms
Glancy Prongay & Murray LLP
The Law Offices of Frank R. Cruz
Case Title
Robinson v. Digital Turbine et al
Docket Number
1:22-cv-00550
Court
Texas Western District Court
Free File
Complaint

Allegations

According to the complaint, 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 allegedly failed to disclose to investors:

(1) that the company’s recent acquisitions, AdColony and Fyber, act as agents in certain of their respective product lines;
(2) that, as a result, revenues for those product lines must be reported net of license fees and revenue share, rather than on a gross basis;
(3) that the company’s internal control over financial reporting as to revenue recognition was deficient; and
(4) that, as a result of the foregoing, the company’s net revenues were overstated throughout fiscal 2022; and
(5) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.