PHILADELPHIA, Dec. 14, 2023 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that it is investigating DigitalOcean Holdings, Inc. (NYSE: DOCN) (“DigitalOcean”) on behalf of the company’s long-term investors.
Recently a securities fraud complaint was filed against DigitalOcean on behalf of investors who purchased shares of the company’s common stock between the dates of February 16, 2023 and August 25, 2023. The complaint alleges that, during that time period, DigitalOcean and certain of the company’s executive officers made a series of materially false and misleading statements regarding the Company’s business to investors.
On August 3, 2023, DigitalOcean announced that it had identified errors in certain of its previously issued financial statements, including “errors in our accounting for income tax expense primarily relating to the calculation of certain capitalized research or experimental expenditures.” Following this disclosure, DigitalOcean’s stock fell $11.57 per share, or approximately 25% in value, to close on August 4, 2023 at $35.11 per share, on unusually heavy trading volume.
Then, on August 24, 2023, DigitalOcean issued a press release announcing a “leadership transition,” including the “implementation of a leadership succession plan to identify the Company’s next CEO.” On this news, shares of DigitalOcean’s stock fell an additional $2.65 per share, to close on August 25, 2023 at $28.86 per share.
The investigation seeks to determine whether the members of DigitalOcean’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
DigitalOcean stockholders who purchased or acquired their shares prior to February 16, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by email (skaskela@kaskelalaw.com / abell@kaskelalaw.com) or online at https://kaskelalaw.com/cases/digitalocean-holdings/ , for additional information about this investigation and their legal rights and options.
Kaskela Law exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
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