NEW YORK, Oct. 21, 2019 /PRNewswire/ -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces the filing of a securities class action on behalf of investors that purchased or acquired the securities of Domo, Inc. ("Domo" or the "Company") (NASDAQ: DOMO) between June 26, 2018 and September 5, 2019, inclusive (the "Class Period"). The lawsuit filed in the United States District Court for the District of Utah alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
If you purchased Domo securities, and/or would like to discuss your legal rights and options please visit Domo Shareholder Class Action or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected].
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, the Offering Documents and 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.
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. Specifically, 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. Additionally, 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.
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.
If you wish to serve as lead plaintiff, you must move the Court no later than December 16, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Domo securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/domoincorporated-domo-shareholder-class-action-lawsuit-fraud-stock-203/apply or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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