Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether the leadership of Doximity, Inc. (“Doximity”) (NYSE: DOCS) breached their fiduciary duties to Doximity and its shareholders.
Scott+Scott is investigating whether members of Doximity’s board of directors or senior management failed to manage Doximity in an acceptable manner, in breach of their fiduciary duties to Doximity, and whether Doximity and its shareholders have suffered damages as a result.
On August 8, 2023, Doximity provided disappointing guidance for the second quarter of fiscal year 2024 and slashed its guidance for the full fiscal year 2024. In conjunction with the disappointing guidance, Doximity announced that it would reduce its workforce by approximately 10%. Doximity further noted that the workforce reduction was expected to cost approximately $8 million to $10 million. On this news, the price of Doximity common stock declined $7.49 per share, or nearly 23%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023.
On April 1, 2024, Jehoshaphat Research published a report alleging, among other things, that “Doximity’s underlying sales . . . are declining at a negative -3-6% rate, but that this decline has been masked through accelerated revenue recognition.” On this news, the price of Doximity common stock declined $1.11 per share, to close at $25.80 per share on April 2, 2024.
If you own shares of Doximity, you may have legal claims against Doximity’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or [email protected].
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CONTACT:
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
600 W. Broadway, Suite 3300, San Diego, CA 92101
844-818-6982
[email protected]