DocuSign, Inc.

  • Active

Investigation
12/22/2021

Initial Lawsuit
12/22/2021

Lawsuit Progression
04/18/2022

Investigation

  • Continous Holding
    March 27, 2020 to December 2, 2021
  • Proposed Claim
    Securities Violation

Investigation into DocuSign’s statements about the impact of the Covid-19 pandemic on its business and growth and the subsequent recovery’s negative impact.

Main Event

"we experienced exceptionally high growth rates"

12/02/2021

Company Statement

During a conference call for its Q3 2022 financial results, Dan Springer described the “boost from COVID-19 over the past year and a half”  leading to “exceptionally high growth rates at scale” as the company “captured customer demand at an unprecedented pace.”

Regarding decelerating billings and lower than expected Q4 outlook Springer explained that they “expected there to be a reduction of that really heightened COVID buying, which drove [their] growth rates dramatically higher than they had ever been even as [they] got bigger.” The revelation came in contradiction with statements made during the Q2 2022 earnings call on September 2, 2021, where he assured investors they were “going to continue to have strong growth rates” because they were “not seeing any differences in churn rates in any meaningful way.”

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
$135.09 $233.82 $-98.73 -42.22%
See more on Factual Timeline

Initial Lawsuit

Plaintiff brings this federal securities class action on behalf of all persons and entities who purchased the publicly traded securities of DocuSign between March 27, 2020 and December 2, 2021, both dates inclusive.

  • Filing Date
    12/22/2021
  • Class Period
    03/27/2020 to 12/02/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Collins v. DocuSign, Inc. et al
  • Docket Number
    1:21-cv-07071
  • Court
    New York Eastern 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 that:

(1) the impact of the Covid-19 pandemic on DocuSign’s business was positive, not negative;
(2) DocuSign misrepresented the role that theCovid-19 pandemic had on its growth;
(3) DocuSign downplayed the impact that a ‘return to normal’ would have on the company’s growth and business; and
(4) as a result, defendants’ publics statements were materially false and/or misleading at all relevant times.

Defendants

  • Company
    DocuSign, Inc.
  • Chief Executive Officer
    Daniel D. Springer
  • Chief Financial Officer
    Michael J. Sheridan
  • Chief Financial Officer
    Cynthia Gaylor

Lawsuit progression

  • Docket Number
    3:22-cv-00824
  • Court
    California Northern District Court

Lead Counsel

04/18/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Labaton Sucharow LLP
  • Lead Plaintiff
    Mixed Group
  • Free File
    Order for lead
[stockdio-historical-chart symbol=”DOCU” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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