Dropbox, Inc. (NASDAQ: DBX) Investor Securities Class Action Lawsuit 10/04/2019

If you purchased shares of Dropbox, Inc. (NASDAQ: DBX), you have certain options and for certain investors are short and strict deadlines running. Deadline: December 3, 2019. NASDAQ: DBX investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Dropbox
Case Name: 
Dropbox Shareholder Class Action Lawsuit 10/04/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: DBX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/04/2019
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
12/03/2019
Summary: 

An investor in shares of Dropbox, Inc. (NASDAQ: DBX) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Dropbox, Inc. in connection with certain allegedly false and misleading statements made in connection with Dropbox's March 23, 2018 initial public stock offering (the "IPO").

San Francisco, CA based Dropbox, Inc. provides a collaboration platform worldwide. On or about March 23, 2018, Dropbox, Inc sold 36 million shares of stock in its initial public stock offering (the "IPO"), at $21.00 a share raising $756,000,000 in new capital.

Shares of Dropbox, Inc. (NASDAQ: DBX) reached as high as $40.08 per share in June 2018.

On February 21, 2019, Dropbox, Inc announced its fourth quarter and fiscal 2018 financial results. Dropbox, Inc. reported that its annual Total Revenue rose from over $1.1 billion in 2017 to over $1.39 billion in 2018 and that its Net Loss increased from $111.7 million in 2017 to $484.9 million in 2018.

On August 8, 2019, Dropbox, Inc reported second-quarter fiscal 2019 results. For the quarter, the Company reported revenue of $410.4 million below analysts' average estimate of $420.3 million. Following this news, Dropbox stock fell 12.8% on August 9, 2019. Shares of Dropbox, Inc. (NASDAQ: DBX) declined to as low as $17.20 per share on August 15, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Dropbox, Inc. (NASDAQ: DBX) common shares, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that Dropbox had materially overstated its ability to monetize its user base, that Dropbox was facing worsening revenue trends that were negatively impacting the Company at the time of the IPO, that Dropbox was tracking below its internal revenue and monetization targets at the time of the IPO, and 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. When the true details entered the market, the lawsuit claims that investors suffered damages.