The lawsuit alleges that GoDaddy made false and/or misleading statements and failed to disclose to investors that: (i) the Company had introduced a heavily discounted promotional price for one-year domain contracts of $4.99, a price significantly lower than their typical multi-year contracts, which range from $10 to $20 per year; (ii) this discount was a deliberate strategy to attract new customers; and (iii) this discount was likely to have a material, negative impact on total bookings growth.
On February 24, 2026, GoDaddy reported its fourth quarter and full year 2025 financial results, revealing that total bookings growth had sharply decelerated to 5%, down from 9% the previous quarter and missing analyst estimates of 7%. Additionally, the Company revealed that it had “introduced a promotional price for dotcom domains with a one-year term” and asserted that there was “a reduction in our average order size of initiation related to the discount.” On this news, GoDaddy’s stock price fell $13.18, or 14%, to close at $79.12 per share on February 24, 2026.