Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Dropbox, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Dropbox, Inc. ("Dropbox" or the "Company") (NASDAQ:DBX) of the December 3, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Dropbox stock or options pursuant and/or traceable to the Company's March 23, 2018 initial public offering ("IPO") and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Dropbox Class A shares of common stock pursuant and/or traceable to the Company's March 23, 2018 IPO. The case, Deinnocentis v. Dropbox, Inc. et al., No. 19-cv-06348 was filed on October 4, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the Registration Statement contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation.
Specifically, the Registration Statement claimed that a significant proportion of the Company’s registered user base was primed for monetization. It claimed that 300 million of the Company’s 500 million registered users had unique characteristics making them likely to be monetized over time, purportedly presenting a "significant opportunity to increase [the Company’s] revenues." The Registration Statement also described Dropbox’s business model as involving the "[i]ncrease conversion of registered users to [the Company’s] paid subscription plans." It highlighted the Company’s increase of paid users from 6.5 million users in 2015 to 11 million users by 2017, representing 69% growth over two years.
In connection with its second quarter 2019 earnings report, Dropbox still claimed to have “more than 500 million registered users” as of June 2019, indicating that the Company had experienced essentially no significant registered user growth since December 31, 2017 — months prior to the IPO. The Company had only converted an additional 2.6 million paid users in the year-and-a-half since the IPO, representing an annualized post-IPO growth rate of only 15% and less than 1% of the “300 million” figure provided in the Registration Statement. Similarly, the Company’s revenue growth rate had dramatically decelerated to only 18% for 2019, a sharp decline from the 40% and 31% annual growth rates highlighted in the Registration Statement
Since Dropbox's IPO, the Company's share price has declined from its IPO price of $21.00 by approximately 16%.
Dropbox, Inc. (DBX)
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Filed on 10/07/2019
Lead Plaintiff Deadline 12/03/2019
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Richard W. Gonnello firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331