BENSALEM, Pa.–(BUSINESS WIRE)–$DOMO–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Domo, Inc. (“Domo” or the “Company”) (NASDAQ: DOMO) (a) Domo common stock pursuant and/or traceable to the Company’s initial public offering (“IPO”) conducted on or around June 29, 2018; or (b) Domo securities between June 28, 2018 and September 5, 2019, inclusive (the “Class Period”). Domo investors have until December 16, 2019, to file a lead plaintiff motion.
Investors suffering losses on their Domo investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
In June 2018, Domo held its initial public offering (“IPO”), selling approximately 10.58 million shares of Class B common stock for $21 per share.
On September 5, 2019, Domo provided guidance for the third quarter and full fiscal year 2020, expecting only $168 million to $169 million revenue for the full year.
Then, on September 6, 2019, JMP Securities cut its Domo price 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 over 37%, to close at $15.77 per share on September 6, 2019, thereby injuring investors. Since the IPO, the Company’s shares have traded as low as $15.77 per share, or 25% below the IPO price of $21.00.
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: (1) that Domo was experiencing weakness in its enterprise and international businesses; (2) that Domo’s billings growth had dramatically slowed; (3) that all of the foregoing was reasonably likely to have a material negative impact on the Company’s financial results; and (4) that as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Domo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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