The Law Offices of Frank R. Cruz reminds investors of the upcoming November 13, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN) securities between February 16, 2023 and August 25, 2023, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On August 3, 2023, DigitalOcean disclosed that it “identified certain errors within the unaudited condensed consolidated financial statements for the quarter ended March 31, 2023 as included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023 filed on May 9, 2023” related to the Company’s accounting for income tax expense. The Company claimed the errors resulted in an $18 million overstatement of the Company’s income tax expense. The Company further disclosed that the material weakness in its internal controls that caused the error traced back to, at latest, December 31, 2022, rendering its Annual Report for the previous year inaccurate as well. On this news, DigitalOcean’s stock price fell $11.57, or 24.8%, to close at $35.11 per share on August 4, 2023, thereby injuring investors.

Then, on August 24, 2023, DigitalOcean announced that its CEO was stepping down. On this news, DigitalOcean’s stock price fell $2.65, or 8.4%, to close at $28.86 per share on August 25, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company’s accounting for income taxes; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired DigitalOcean securities during the Class Period, you may move the Court no later than November 13, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231110772792/en/