A lawsuit was filed on behalf of investors in Dropbox, Inc. (NASDAQ: DBX) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/22/2019 -- The Shareholders Foundation announced that an investor, who purchased shares of Dropbox, Inc. (NASDAQ: DBX), filed a lawsuit over alleged Securities Laws violations by Dropbox, Inc. in connection with Dropbox's March 23, 2018 initial public stock offering (the "IPO").
Investors who purchased shares of Dropbox, Inc. (NASDAQ: DBX) have certain options and for certain investors are short and strict deadlines running. Deadline: December 3, 2019. NASDAQ: DBX investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
San Francisco, CA based Dropbox, Inc. provides a collaboration platform worldwide. On or about March 23, 2018, Dropbox, Inc sold 36 million shares of stock in its initial public stock offering (the "IPO"), at $21.00 a share raising $756,000,000 in new capital.
Shares of Dropbox, Inc. (NASDAQ: DBX) reached as high as $40.08 per share in June 2018.
On February 21, 2019, Dropbox, Inc announced its fourth quarter and fiscal 2018 financial results. Dropbox, Inc. reported that its annual Total Revenue rose from over $1.1 billion in 2017 to over $1.39 billion in 2018 and that its Net Loss increased from $111.7 million in 2017 to $484.9 million in 2018.
On August 8, 2019, Dropbox, Inc reported second-quarter fiscal 2019 results. For the quarter, the Company reported revenue of $410.4 million below analysts' average estimate of $420.3 million. Following this news, Dropbox stock fell 12.8% on August 9, 2019. Shares of Dropbox, Inc. (NASDAQ: DBX) declined to as low as $17.20 per share on August 15, 2019.
The plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that Dropbox had materially overstated its ability to monetize its user base, that Dropbox was facing worsening revenue trends that were negatively impacting the Company at the time of the IPO, that Dropbox was tracking below its internal revenue and monetization targets at the time of the IPO, and that as a result, defendants' statements about Dropbox's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Those who purchased shares of Dropbox, Inc. (NASDAQ: DBX) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.