NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against DigitalOcean Holdings, Inc. (“DigitalOcean” or the “Company”) (NYSE: DOCN). The investigation concerns whether DigitalOcean and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
DigitalOcean operates as a holding company. Together with its subsidiaries, the Company provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses to build, deploy, and scale software applications.
On August 3, 2023, DigitalOcean announced that it had made errors on previously issued financial statements. The Company stated that in connection with the preparation of its unaudited condensed consolidated financial statements for the period ended June 30, 2023, Digital Ocean “identified certain errors within the unaudited condensed consolidated financial statements for the quarter ended March 31, 2023 as included in our Quarterly Report on Form 10-Q,” which was filed on May 9, 2023. Specifically, the Company stated there were errors in its income tax expense accounting relating to the calculation of certain capitalized research or experimental expenditures, which impacted DigitalOcean’s income tax provision. As a result of the error, DigitalOcean announced that “accrued taxes as of March 31, 2023 were overstated and the income tax expense for the three months ended March 31, 2023 was overstated by approximately $18 million.” On this news, the price of DigitalOcean shares declined by $11.57 per share, or approximately 25.96%, from $46.68 per share to close at $35.11 on August 4, 2023.
If you purchased or otherwise acquired DigitalOcean securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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