DigitalOcean Holdings, Inc. (DOCN) Securities Lawsuit Investigation
On August 4, 2023, DigitalOcean Holdings, Inc. (NYSE: DOCN) plunged over 24% after announcing that it would be reducing its full-year guidance and restating some previously reported financial results due to accounting errors, according to Barron’s. As a result of these errors, DigitalOcean Holdings identified a material weakness in its internal control over financial reporting, according to its press release.
Following this news, DigitalOcean Holding’s stock price plummeted over 24% on Friday, August 4, 2023, causing significant harm to investors.
Lost Money in DOCN Stock?
You may be eligible to recover your losses. Get a free and confidential consultation.
(Please provide number of shares, purchase date, and estimated losses.)
Why is DigitalOcean Holdings (DOCN) Stock Dropping?
On Thursday, August 3, 2023, DigitalOcean announced its Q2 2023 financial results and disclosed in an SEC filing that on July 28, 2023, its audit committee determined that the Company’s previously issued unaudited condensed consolidated financial statements for the three months ended March 31, 2023, should no longer be relied upon due to accounting errors. DigitalOcean added that, primarily as a result of certain errors under Section 174 of the Internal Revenue Code of 1986, “accrued taxes as of March 31, 2023 were overstated and the income tax expense for the three months ended March 31, 2023 was overstated by approximately $18 million.” As a result of these errors and restated financial results, DigitalOcean “has identified a material weakness in its internal control over financial reporting,” and has stated that it “did not have the appropriate skills and level of experience to assess complicated tax matters and the Company did not properly identify, risk assess, design and maintain effective controls related to the income tax provision[…].”
Our Securities Lawyers Have a Winning Record Against Companies Like DigitalOcean Holdings
Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.
You “shouldn’t presume that powerful banks and other powerful interests can just get away with doing bad things. Good, qualified counsel that are committed to a cause can usually figure out how to prosecute such cases effectively and prevail.”
–Eric Gibbs, award-winning securities attorney
Praise from the Courts
Federal judge in our AT&T class action:
“I’ve always found them to be extraordinary counsel in terms of their preparation and their professionalism.”
Federal judge in our Chase lawsuit (resulting in $100 million settlement):
They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”
Read more about what judges say about us.
Gibbs Law Group's Financial Fraud Experience
We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).