Dropbox, Inc. (NYSE: DBX)
A class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all those who purchased Dropbox, Inc. (NYSE: DBX) securities in connection with the Company's IPO on March 23, 2018. (the “Class Period”).
According to the lawsuit, the 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) Dropbox had materially overstated its ability to monetize its user base; (2) Dropbox was facing worsening revenue trends that were negatively impacting the Company at the time of the IPO; (3) Dropbox was tracking below its internal revenue and monetization targets at the time of the IPO; and (4) 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.
On August 27, 2019, Dropbox stock closed at $17.53 per share, representing a decline of more than 16% from the IPO price. Shockingly, 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
If you are a current shareholder and/or purchased stock in connection with the Company's IPO on March 23, 2018.(the “Class Period”), and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.