New York, New York--(Newsfile Corp. - December 13, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Domo, Inc. (NASDAQ: DOMO) ("Domo" or the "Company") of the December 16, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Domo stock or options between June 28, 2018, and September 5, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/DOMO. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the District of Utah on behalf of all those who purchased Domo securities between June 28, 2018, and September 5, 2019 (the "Class Period"). The case, Patton v. Domo, Inc., No. 19-cv-00781 was filed on October 17, 2019, and has been assigned to Judge Dale A. Kimball.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Domo was experiencing weakness in its enterprise and international businesses; (2) Domo's billings growth had dramatically slowed; (3) all of the foregoing was reasonably likely to have a material negative impact on the Company's financial results; and (4) 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.
Specifically, on September 5, 2019, during after-market hours, 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. Defendants revealed to investors that they expected third-quarter revenue of $41.5-42.5 million versus a consensus of $44.2 million and a loss of $1.04-1.00 per share versus a consensus of a $0.91 loss per share. Defendants revealed a full year 2020 view with revenue of $168-169 million versus a consensus of $173.7 million, and a loss of $4.10-4.00 per share versus a consensus of a $3.82 loss per share.
Then, on September 6, 2019, during pre-market hours, 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.
After the announcement, Domo's share price fell from $25.21 per share on September 5, 2019 to a closing price of $15.77 on September 6, 2019-a $9.44 or a 37.45% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Domo's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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