A lawsuit was filed on behalf of investors in DigitalOcean Holdings, Inc. (NYSE:DOCN) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/28/2023 -- An investor, who purchased shares of DigitalOcean Holdings, Inc. (NYSE: DOCN), filed a lawsuit against DigitalOcean Holdings, Inc. over alleged Securities Laws violations.
Investors who purchased shares of DigitalOcean Holdings, Inc. (NYSE: DOCN) have certain options and for certain investors are short and strict deadlines running. Deadline: November 13, 2023. NYSE: DOCN investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
New York based DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally.
On August 3, 2023, DigitalOcean Holdings, Inc. announced errors in previously issued financial statements. The release stated, "In connection with the preparation of our unaudited condensed consolidated financial statements for the period ended June 30, 2023, we identified certain errors within the unaudited condensed consolidated financial statements for the quarter ended March 31, 2023 as included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023 filed on May 9, 2023. Specifically, there were errors in our accounting for income tax expense primarily relating to the calculation of certain capitalized research or experimental expenditures under Section 174 of the Internal Revenue Code of 1986 which impacted our income tax provision ("Section 174 Error"). Primarily as a result of the Section 174 Error, 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."
Shares of DigitalOcean Holdings, Inc. (NYSE: DOCN) declined from $51.69 per share on July 19, 2023, to as low as $34.30 per share on August 04, 2023.
The plaintiff claims that between February 16, 2023 and August 25, 2023, the Defendants misled investors by failing to disclose that Defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company's accounting for income taxes, and that as a result of the foregoing, Defendants' financial statements were inaccurate and materially misleading.
Those who purchased shares of DigitalOcean Holdings, Inc. (NYSE: DOCN) have certain options and should contact the Shareholders Foundation.
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