NEW YORK, NY / ACCESSWIRE / August 16, 2023 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of DigitalOcean Holdings, Inc. ("DigitalOcean" or "the Company") (NYSE:DOCN). Investors who purchased DigitalOcean securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/docn.
The investigation concerns whether DigitalOcean has violated federal securities laws.
Investigation Details:
On August 3, 2023, DigitalOcean issued a press release announcing errors in previously issued financial statements. The release stated, "In connection with the preparation of our unaudited condensed consolidated financial statements for the period ended June 30, 2023, we 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 for the three months ended March 31, 2023 filed on May 9, 2023. Specifically, there were errors in our accounting for income tax expense primarily relating to the calculation of certain capitalized research or experimental expenditures under Section 174 of the Internal Revenue Code of 1986 which impacted our income tax provision ("Section 174 Error"). Primarily as a result of the Section 174 Error, 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, DigitalOcean's stock price fell $12.12 per share, or 25.96%, in intraday trading on August 4, 2023.
What's Next?
If you are aware of any facts relating to this investigation or purchased DigitalOcean securities, you can assist this investigation by visiting the firm's site: www.bgandg.com/docn. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
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Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
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Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | [email protected]
SOURCE: Bronstein, Gewirtz & Grossman, LLC