CS Disco, 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 Southern District of New York on behalf of those who acquired CS Disco, Inc. (“Disco” or the “Company”) (NYSE: LAW) securities during the period from July 21, 2021 through August 11, 2022, inclusive (the “Class Period”). Investors have until November 20, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 11, 2022, Disco released financial results for the second quarter of 2022, announcing that the Company’s revenue growth tapered drastically as compared to past quarters. Disco also announced that it would no longer be including in its guidance any revenues attributable to its largest customers for the entire year. On this news, the price of Disco shares declined by $15.53 per share, or approximately 53.63%, from $28.96 per share to close at $13.43 on August 12, 2022.
The lawsuit alleges that during the Class Period, Disco repeatedly touted strong growth in its revenues attributable to customer usage of its cloud-based electronic discovery platform and asserted that it had good advance visibility into changes in the demand from individual customers over time. As such, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Disco was aware of indications of significant headwinds to its usage-driven revenue growth; (ii) the Company was aware it was losing their largest customers’ business; and (iii) it was going to factor out its large customers from the Company’s full-year revenue guidance.
On August 11, 2022, Disco released financial results for the second quarter of 2022, announcing that the Company’s revenue growth tapered drastically as compared to past quarters. Disco also announced that it would no longer be including in its guidance any revenues attributable to its largest customers for the entire year. On this news, the price of Disco shares declined by $15.53 per share, or approximately 53.63%, from $28.96 per share to close at $13.43 on August 12, 2022.
The lawsuit alleges that during the Class Period, Disco repeatedly touted strong growth in its revenues attributable to customer usage of its cloud-based electronic discovery platform and asserted that it had good advance visibility into changes in the demand from individual customers over time. As such, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Disco was aware of indications of significant headwinds to its usage-driven revenue growth; (ii) the Company was aware it was losing their largest customers’ business; and (iii) it was going to factor out its large customers from the Company’s full-year revenue guidance.