BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Dropbox, Inc. (“Dropbox” or the “Company”) (NASDAQ: DBX) 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”). Dropbox investors have until December 3, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Dropbox investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
If you purchased Dropbox Class A common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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