NEW YORK--(BUSINESS WIRE)--
Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the District of Utah on behalf of investors that purchased Domo, Inc. (DOMO) securities pursuant and/or traceable to the Company’s initial public offering (“IPO”) on or around June 29, 2018 and/or between June 28, 2018 and September 5, 2019 (the “Class Period”). Investors have until December 16, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On June 1, 2018, Domo filed a registration statement with the SEC in connection with the IPO, which was declared effective by the SEC on June 28, 2018 (the “Registration Statement”). On June 29, 2018, Domo filed a prospectus in connection with the IPO (the “Prospectus”), which incorporated and formed part of the Registration Statement (collectively, the “Offering Documents”). On or around June 29, 2018, Domo’s Class B common stock began trading on the NASDAQ. On July 3, 2018, Domo closed its IPO, in which the company issued and sold 10,580,000 shares of Class B common stock at $21.00 per share.
On September 5, 2019, Domo issued a press release announcing its financial results for the second quarter of 2020. Although Domo reported positive earnings news, the company also provided guidance for the third quarter and full fiscal year 2020 that fell short of market expectations.
Then, on September 6, 2019, JMP Securities dropped its Domo target by $10.00 to $37.00, citing the “disappointing” report and guidance, weakness in Domo’s enterprise and international businesses, and billings growth that was about half of what was expected.
On this news, Domo’s stock price fell $9.44 per share, or 37.45%, to close at $15.77 per share on September 6, 2019, or 24.9% below the IPO price of $21.00.
The complaint, filed October 17, 2019, alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Domo was experiencing weakness in its enterprise and international businesses; (ii) Domo’s billings growth had dramatically slowed; (iii) all of the foregoing was reasonably likely to have a material negative impact on the company’s financial results; and (iv) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein and the company’s public statements were materially false and misleading at all relevant times.
If you purchased Domo securities during the Class Period, continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.