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Bragar Eagel & Squire, PC reminds investors of this class

Vaseline 2 months ago

NEW YORK, April 21, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class actions have been filed on behalf of the shareholders of Luna Innovations, Inc. (NASDAQ: LUNA), HireRight Holdings Corporation (NYSE: HRT) and Doximity, Inc. (NYSE: DOCS). Shareholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found via the link provided.

Luna Innovations, Inc. (NASDAQ: LUNA)

Class period: August 11, 2023 – March 25, 2024

Lead plaintiff deadline: May 31, 2024

According to the lawsuit, Defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Luna Innovations’ financial statements from August 10, 2023 to date contained false figures due to improper revenue recognition ; (2) as a result, Luna Innovations would have to restate its previously filed August 10, 2023 to November 14, 2023 financial statements; (3) Luna Innovations lacked adequate internal controls; and (4) as a result, Defendants’ statements about its business, operations, and prospects were at all times materially false and misleading and/or lacked a reasonable basis.

For more information about the Luna Innovations class action, visit: https://bespc.com/cases/LUNA

HireRight Holdings Corporation (NYSE: HRT)

Class Period: pursuant and/or traceable to the offering documents issued in connection with HireRight’s initial public offering in October 2021 (the “IPO” or “Offering”)

Lead plaintiff deadline: June 3, 2024

HireRight provides technology-driven workforce risk management and compliance solutions to a customer base characterized as a “diverse range of organizations, from large-scale multinational companies to small and medium-sized businesses, across a wide range of industries.” The company offers background check, verification, identification, monitoring, and drug and health research services to clients under the HireRight brand and has a reportedly “robust pipeline of capabilities developed by (its) sales team to continue to attract new customers and gain market share. on the market.”

On October 6, 2021, HireRight filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, following an amendment, was declared effective by the SEC on October 28, 2021 (the “Registration Statement”).

On November 1, 2021, HireRight filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed a part of the Registration Statement (the “Prospectus” and, together with the Registration Statement, the “Offering Documents”). .

That same day, pursuant to the offering documents, HireRight’s common stock began publicly trading on the New York Stock Exchange (“NYSE”) under the ticker symbol HRT.

Pursuant to the offering documents, HireRight issued approximately 22.0 million shares of its common stock to the public at the offering price of $19.00 per share, for proceeds to the company of approximately $399 million, after applicable underwriting discounts and commissions, and before expenses.

According to the complaint, the offering documents were negligently prepared and, as a result, contained untrue statements of material facts or failed to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing apply to its issuance. preparation. In particular, the Offering Documents made false and/or misleading statements and/or failed to disclose that: (i) HireRight was exposed to customers with significant employment and hiring risk and that the Company achieved greater revenue growth from hiring existing customers than from taking on new customers; (ii) as a result, the Company’s revenue growth was unsustainable to the extent that it was dependent on the stability of acquiring its current customers and/or the profitability of acquiring new customers; (iii) accordingly, HireRight had overstated its post-IPO business and/or prospects; and (iv) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On January 19, 2023, Stifel, a brokerage and investment banking firm, downgraded HireRight from a Hold to a Buy, prompting several market analysts to issue releases discussing the downgrade. For example, Seeking Alpha reported that Stifel found that HireRight had exposure to large technology companies where there is greater employment and hiring risk, and that a greater portion of the company’s growth comes from hiring existing customers than from hiring new ones customers.

On this news, HireRight’s stock price fell $0.88 per share, or 7.5%, to close at $10.75 per share on January 19, 2023.

At the time of the filing of the complaint, HireRight’s common stock continues to trade below its IPO price of $19.00 per share.

For more information about the HireRight class action, visit: https://bespc.com/cases/HRT

Doximity, Inc. (NYSE: DOCS)

Class period: February 9, 2022 – April 1, 2024 (common shares only)

Lead plaintiff deadline: June 17, 2024

Doximity operates a digital platform that provides connections between medical information and patient planning tools for medical professionals. The Class Period begins on February 9, 2022, when Doximity reports its quarterly financial results for the third quarter of fiscal 2022, after the market closes the night before. During the accompanying after-hours quarterly investor earnings call on February 8, 2022, defendant Anna Bryson, the company’s Chief Financial Officer, emphasized that “marketers have witnessed the value of running these digital programs” and that it was this “value that The main reason we are seeing this continued demand from our customers and no new (COVID) variants.” To this end, Defendant Bryson further assured investors that the Company was “focused on . . . truly building a business that can deliver years of sustainable, high-margin growth.”

The complaint alleges that throughout the Class Period, Defendants continued to tout the sustainability of the Company’s business prospects while also downplaying the importance of customer upsell rates to the Company’s financial performance. For example, during the second quarter fiscal 2023 investor earnings call on November 10, 2022, defendant Jeffrey Tangney, the company’s Chief Executive Officer, assured investors that “pharma is doing quite well” amid investor concerns that macro -economic headwinds would have a significant impact on Doximity. financial performance. Defendant Bryson similarly emphasized that the company’s sales pipeline has “larger dollar deals than we’ve seen before” and, to allay investor concerns, explained that while Doximity’s upsell rates are “a bit below historical standards were low,” customer upsells “do not represent a significant portion of our revenue.”

Similarly, in February 2023, Defendant Bryson specifically noted that Doximity is “less reliant on large upsells than previous years,” and in May 2023, Defendant Bryson indicated that the company was being conservative in its financial guidance to the market by assuming upsell rates of “half our historical (upsell) rate.”

The complaint further alleges that, despite Defendants’ claims about the sustainability of Doximity’s growth and profitability, investors began to learn the truth on August 8, 2023, when, after the market closed, Doximity reported its financial results for the first quarter of reported fiscal year 2024. , which ended June 30, 2023. Although the company exceeded its quarterly revenue and adjusted EBITDA guidance for the first quarter, the company provided disappointing guidance for the second quarter of fiscal 2024 and lowered its expectations for the full fiscal year 2024 . Doximity announced that it expected fiscal 2024 revenue of between $452 million and $468 million (down from previous expectations of between $500 million and $506 million), and year-over-year revenue growth of only between 7.9 % and 11.7%), and adjusted EBITDA of between $193 million and $209 million (down from prior expectations of between $216 million and $222 million, and annualized adjusted EBITDA growth of only between 4.9% and 13.6%). Coupled with the disappointing expectations, Doximity announced it would reduce its workforce by approximately 10%. The company further noted that the workforce reduction is expected to cost approximately $8 million to $10 million.

In explaining this turnaround, defendant Bryson admitted that the company’s “major upsells have significantly underperformed, and we expect this to continue in the near term.” Defendant Tangney further explained that Doximity was unable to complete the sale in part due to “fewer face-to-face meetings with our customers.” On this news, the price of Doximity common stock fell $7.49 per share, or nearly 23%, from a closing price of $32.79 per share on August 8, 2023, to $25.30 per share on August 9, 2023.

Investors learned more about the unsustainability of the company’s revenue growth on April 1, 2024, when Jehosphat Research published a report claiming, among other things, that “Doximity’s underlying sales . . . decline by a negative percentage of -3-6%, but that this decline has been masked by accelerated revenue recognition.” On this news, the price of Doximity common stock fell $1.11 per share, or more than 4% over two trading days, from a closing price of $26.91 per share on March 28, 2024, to close at $25 .80 per share on April 2, 2024. .

The complaint further alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts, about the Company’s business and operations. In particular, Defendants repeatedly praised the Company’s business prospects and the sustainability of the Company’s revenue growth and profitability, while criticizing the impact of competitive and tightening macroeconomic conditions on the Company and Doximity’s dependence on “upselling” products and services (such as additional advertising). existing customers to support the company’s performance and future growth.

For more information about the Doximity class action, visit: https://bespc.com/cases/DOCS

About Bragar Eagle & Squire, PC:

Bragar Eagle & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Advertising lawyer. Previous results do not guarantee comparable results.

Contact details:

Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com