Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Domo, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Domo, Inc. (“Domo” or the “Company”) (NASDAQ: DOMO) of the December 16, 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 Domo stock or options between June 28, 2018, and September 5, 2019 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 firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the District of Utah on behalf of all those who purchased Domo securities between June 28, 2018, and September 5, 2019 (the “Class Period”). The case, Patton v. Domo, Inc., No. 19-cv-00781 was filed on October 17, 2019, and has been assigned to Judge Dale A. Kimball.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Domo was experiencing weakness in its enterprise and international businesses; (2) Domo's billings growth had dramatically slowed; (3) all of the foregoing was reasonably likely to have a material negative impact on the Company's financial results; and (4) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein and the Company's public statements were materially false and misleading at all relevant times.
Specifically, on September 5, 2019, during after-market hours, Domo issued a press release announcing its financial results for the second quarter of 2020. Although Domo reported positive earnings news, the Company also provided guidance for the third quarter and full fiscal year 2020 that fell short of market expectations. Defendants revealed to investors that they expected third-quarter revenue of $41.5-42.5 million versus a consensus of $44.2 million and a loss of $1.04-1.00 per share versus a consensus of a $0.91 loss per share. Defendants revealed a full year 2020 view with revenue of $168-169 million versus a consensus of $173.7 million, and a loss of $4.10-4.00 per share versus a consensus of a $3.82 loss per share.
Then, on September 6, 2019, during pre-market hours, JMP Securities dropped its Domo 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.
After the announcement, Domo’s share price fell from $25.21 per share on September 5, 2019 to a closing price of $15.77 on September 6, 2019—a $9.44 or a 37.45% drop.
Domo, Inc. (DOMO)
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Filed on 11/04/2019
Lead Plaintiff Deadline 12/16/2019
35 days remaining
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