Amplitude, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Amplitude, Inc. (“Amplitude” or the “Company”) (NASDAQ: AMPL) securities during the period of September 21, 2021 to February 16, 2022 inclusive (“the Class Period”). Investors have until April 15, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
According to the complaint, Amplitude issued a press release on September 21, 2021–the same day that Amplitude announced that the registration statement for its IPO had been declared effective–announcing its financial results for the second quarter of 2021. The release highlighted several metrics that purportedly showed favorable growth at the Company. On September 28, 2021, Amplitude filed the prospectus for the IPO with the U.S. Securities and Exchange Commission (“the Prospectus”). The Prospectus highlighted the Company’s land-and-expand strategy as one of its primary “Growth Strategies,” and claimed that this land-and-expand strategy was already successful.
However, on February 16, 2022, Amplitude revealed its financial results for the fourth quarter of 2021 and revised its 2022 downward. Amplitude then stated that its land-and-expand strategy, which it had claimed had already proven successful, was in fact poised to “take a few years” before it was expected to accelerate results and that despite their prior assurances of sustainable growth, Amplitude management “really [did not] know” when this impact would occur. When questioned about why the Company was not expanding as rapidly as before, the Company’s Chief Financial Officer stated “that the Company’s prior success was the temporary result of the COVID-19 pandemic, which had worn off, and ‘[w]e obviously expected that growth rate to kind of slow down or decline.’” On this news, the price of Amplitude shares declined by $24.51 per share, or approximately 58.9%, from $41.61 on February 16, 2022 to close at $17.10 on February 17, 2022.
The lawsuit alleges that the Company’s fraudulent scheme (i) deceived the investing public regarding Amplitude’s prospects and business; (ii) artificially inflated the price of Amplitude stock; and (iii) caused plaintiff and other members of the Class to purchase Amplitude stock at artificially inflated prices and suffer damages when that artificial inflation was removed from the price of Amplitude stock.
According to the complaint, Amplitude issued a press release on September 21, 2021–the same day that Amplitude announced that the registration statement for its IPO had been declared effective–announcing its financial results for the second quarter of 2021. The release highlighted several metrics that purportedly showed favorable growth at the Company. On September 28, 2021, Amplitude filed the prospectus for the IPO with the U.S. Securities and Exchange Commission (“the Prospectus”). The Prospectus highlighted the Company’s land-and-expand strategy as one of its primary “Growth Strategies,” and claimed that this land-and-expand strategy was already successful.
However, on February 16, 2022, Amplitude revealed its financial results for the fourth quarter of 2021 and revised its 2022 downward. Amplitude then stated that its land-and-expand strategy, which it had claimed had already proven successful, was in fact poised to “take a few years” before it was expected to accelerate results and that despite their prior assurances of sustainable growth, Amplitude management “really [did not] know” when this impact would occur. When questioned about why the Company was not expanding as rapidly as before, the Company’s Chief Financial Officer stated “that the Company’s prior success was the temporary result of the COVID-19 pandemic, which had worn off, and ‘[w]e obviously expected that growth rate to kind of slow down or decline.’” On this news, the price of Amplitude shares declined by $24.51 per share, or approximately 58.9%, from $41.61 on February 16, 2022 to close at $17.10 on February 17, 2022.
The lawsuit alleges that the Company’s fraudulent scheme (i) deceived the investing public regarding Amplitude’s prospects and business; (ii) artificially inflated the price of Amplitude stock; and (iii) caused plaintiff and other members of the Class to purchase Amplitude stock at artificially inflated prices and suffer damages when that artificial inflation was removed from the price of Amplitude stock.