SAN DIEGO & AMERICAN FORK, Utah–(BUSINESS WIRE)–$DOMO #ClassAction–Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Domo, Inc. (NASDAQ: DOMO) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its June 2019 initial public offering (“IPO”) and for alleged violations of the Securities Exchange Act of 1934 between June 28, 2019 and September 5, 2019. Domo operates a cloud-based platform that digitally connects officers and employees with the people, data, and systems in an organization.
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Domo, Inc. (DOMO) Accused of Misleading Investors in IPO
According to the complaint, Domo held its initial public offering on June 29, 2019, offering 10,580,000 common shares at $21 per share for net proceeds of approximately $202.5 million. In its registration documents, Domo touted its expanded enterprise customer base as well as its focus on expanding its international footprint. However, in reality, Domo was experiencing weakness in its enterprise and international businesses and its billings growth had dramatically slowed. As a result, on September 5, 2019, Domo issued a press release that announced guidance for third quarter and full year fiscal 2019 that fell short of market expectations. Following these disappointing results, JMP Securities dropped its Domo target by $10.00 to $37.00, citing Domo’s weakness in 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 to close at $15.77, an almost 25% drop from its IPO price.
Domo, Inc. (DOMO) Shareholders Have Legal Options
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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