Overview

A class action lawsuit has been filed against Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Doximity lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Doximity common stock between February 9, 2022, and April 1, 2024, both dates inclusive (the “Class Period”), and investors have until June 17, 2024, to seek appointment as lead plaintiff of the Doximity class action lawsuit.

Doximity provides a digital platform for U.S. medical professionals.  The Company’s cloud-based platform provides tools to its members, which help them to collaborate with colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with medical news and research, and manage careers.

The lawsuit alleges that, throughout the Class Period, Defendants repeatedly touted the Company’s business prospects and the sustainability of the Company’s revenue growth and profitability, while downplaying the impact of competition and tightening macroeconomic conditions on the Company and its reliance on “upselling” products and services (such as additional advertising) to existing customers to sustain its performance and future growth.

On August 8, 2023, after the market closed, the Company reported its financial results for the first quarter of fiscal year 2024, which ended on June 30, 2023.  While 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 year 2024 and slashed its guidance for the full fiscal year 2024.  On this news, the price of Doximity common stock declined $7.49 per share, or nearly 23%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023.

On April 1, 2024, Jehoshaphat Research published a research report alleging, among other things, that Doximity’s “underlying sales … are declining at a negative -3-6% rate, but that this decline has been masked through accelerated revenue recognition.”  On this news, the price of Doximity common stock declined $1.11 per share, or more than 4% over two trading days, from a close of $26.91 per share on March 28, 2024, to close at $25.80 per share on April 2, 2024.

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If you purchased or otherwise acquired Doximity common stock between February 9, 2022 and April 1, 2024, both dates 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 [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the Doximity lawsuit is June 17, 2024.