Case Summary

CS Disco

NYSE: LAW

Case Details

  • Gambrill v. CS Disco, Inc., et al.
  • Class Period:July 18, 2021 - August 11, 2022
  • Date Filed:September 19, 2023
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:23-cv-08270
  • Lead Plaintiff Deadline: November 20, 2023
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Overview

A class action lawsuit, captioned Gambrill v. CS Disco, Inc., et al., has been filed against CS Disco, Inc. (“CS Disco” or the “Company”) (NYSE: LAW) and certain of its top current and/or former executive officers alleging violations of federal securities laws.  The lawsuit seeks to represent purchasers or acquirers other than Defendants that purchased shares of CS Disco common stock and/or securities between July 18, 2021, and August 11, 2022, inclusive (the “Class Period”).

CS Disco provides cloud-based, artificial intelligence-powered technologies to simplify electronic discovery, legal document review, legal hold, and case management for enterprises, law firms, legal services providers, and governments.  CS Disco’s principal revenue-generating segment was its electronic document review platform.

The complaint alleges that during the Class Period, “CS Disco repeatedly touted strong growth in its revenues attributable to customer usage of its cloud-based electronic discovery platform and asserted that it had good advance visibility into changes in the demand from individual customers over time.”

The complaint also alleges that “[w]hile the Company also acknowledged that its rapid revenue growth was ‘usage driven’ and may be subject to volatility, it did not inform investors during the Class Period that it had any indication of significant headwinds to its growth.”

The complaint further alleges that “[t]he truth began to emerge on August 11, 2022, when CS Disco released financial results for the second quarter of 2022 that shocked investors and analysts alike.  Not only did the Company’s revenue growth taper drastically [as compared to] past quarters, but the Company alerted the markets that it would no longer be including in its guidance any revenues attributable to its largest customers for the entire year.”  On August 12, 2022, CS Disco common shares fell 53% on heavy volume.

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If you purchased or otherwise acquired CS Disco common stock and/or securities between July 18, 2021 and August 11, 2022, inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.  You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to submit an application with the Court to serve as a lead plaintiff in the CS Disco lawsuit is November 20, 2023.

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