LOS ANGELES, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming December 3, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of Dropbox, Inc. (“Dropbox” or the “Company”) (NASDAQ: DBX) investors who purchased Class A common stock pursuant or traceable to the Registration Statement issued in connection with the Company’s March 2018 initial public offering (“IPO” or the “Offering”).
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.
On or about March 23, 2018, Dropbox held its initial public offering (“IPO”), in which it sold 41.4 million shares at $21.00 per share.
On August 8, 2019, Dropbox announced its second quarter 2019 financial results and claimed to have “more than 500 million registered users” as of June 2019, or essentially flat user growth since December 31, 2017. Moreover, the Company’s revenue growth was only 18%, a sharp decline from annual growth rates of 40% and 31% highlighted in the Registration Statement.
On this news, the Company’s share price fell $2.75, or nearly 13%, to close at $18.71 per share on August 9, 2019, thereby injuring investors. Since the IPO, Dropbox’s stock has traded as low as $17.26, significantly below the $21 IPO price.
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 Dropbox had materially overstated its ability to monetize its user base; (2) that Dropbox was facing worsening revenue trends, which were negatively impacting the Company at the time of the IPO; (3) that Dropbox was tracking below its internal revenue and monetization targets at the time of the IPO; and (4) that as a result, defendants’ statements about Dropbox’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased or otherwise acquired Dropbox Class A common stock, you may move the Court no later than December 3, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com