DigitalOcean Holdings, Inc. (NYSE: DOCN)

This lawsuit is for anyone who acquired securities in DigitalOcean Holdings, Inc. (NYSE: DOCN) from February 16, 2023 through August 25, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company had proper controls in place to handle complex tax issues but then by understating the Company’s tax liability by $18 million dollars.

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, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on August 24, 2023, DigitalOcean announced that its CEO was stepping down. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in DigitalOcean Holdings, Inc. (NYSE: DOCN) from February 16, 2023 through August 25, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.