NEW YORK, Nov. 18, 2019 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Domo, Inc. ("Domo" or the "Company") (NASDAQ: DOMO) and certain of its officers. The class action, filed in United States District Court, for the District of Utah, and indexed under 19-cv-00781, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired: (a) Domo common stock pursuant and/or traceable to the Company's initial public offering ("IPO" or "Offering") commenced on or around June 29, 2018; or (b) Domo securities between June 28, 2018 and September 5, 2019, both dates inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Domo common stock traceable to the IPO commenced on or around June 29, 2018; or (b) Domo securities between June 28, 2018, and September 5, 2019, you have until December 16, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Domo was founded in 2010 and is headquartered in American Fork, Utah. The Company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. The Company operates a cloud-based platform in the United States that purportedly digitally connects everyone from the chief executive officer to the frontline employee with the people, data, and systems in an organization, giving them access to real-time data and insights, and allowing them to manage business from smartphones.
On June 1, 2018, Domo filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after amendment, was declared effective by the SEC on June 28, 2018 (the "Registration Statement"). On June 29, 2018, Domo filed a prospectus in connection with the IPO on Form 424B4 (the "Prospectus"), which incorporated and formed part of the Registration Statement (collectively, the "Offering Documents"). On or around June 29, 2018, pursuant to the IPO, Domo's Class B common stock began trading on the Nasdaq Global Market ("NASDAQ"). On July 3, 2018, Domo closed the IPO, in which the Company issued and sold 10,580,000 shares of Class B common stock at $21.00 per share.
The Complaint 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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP