On November 27, 2023, Roblox Corporation was sued for violations of the federal securities laws in the United States District Court for the Southern District of New York on behalf of investors who purchased or otherwise acquired Roblox Class A common stock between March 10, 2021 and February 15, 2022, inclusive (the “Class Period”).
Recent Security Class Actions
According to the Complaint, Paycom Software, Inc. purports to be a "leading provider of a comprehensive, cloud-based human capital management solution delivered as "Software-as-a-Service."
On July 6, 2021, Paycom released a press release entitled "Paycom Launches Beti, an Industry-First Employee-Driven Payroll Solution." Paycom characterized Beti as the "industry's first self-service payroll technology allowing employees to do their own payroll, improving data accuracy, oversight and the user experience for businesses and their employees on each payroll cycle."
The Complaint alleges that Defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Paycom's Beti product led to cannibalization of the Paycom's services and revenues; (2) Paycom knew but failed to disclose that Beti was leading to cannibalization of Paycom's services and revenues, and failed to warn of cannibalization as a general risk; (3) as a result of cannibalization of revenue, Paycom missed its expected 3Q23 revenue and would have to revise its expected 2023 revenues; (4) the cannibalization issue resulted in projected 2024 year-over-year revenue growth to between 10% and 12%, well below expectations; and (5) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On November 7, 2023, SCYNEXIS, Inc. was sued for violations of the federal securities laws in the United States District Court for the District of New Jersey on behalf of investors who purchased or otherwise acquired Scynexis securities between March 31, 2023 and September 22, 2023, inclusive (the “Class Period”).
According to the Complaint, DermTech, Inc. is a molecular diagnostic company that develops and markets non-invasive genomics test to aid the diagnosis and management of skin cancer, inflammatory skin diseases, and aging-related skin conditions. The DermTech Melanoma Test ("DMT") is a commercial test offered to assess pigmented skin lesions for melanoma.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company experienced challenges with collections from commercial payors; (2) that, as a result, there was a lower average selling price for DermTech's DMT; (3) that, as a result of the foregoing, the Company's revenue growth would be adversely impacted; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On September 19, 2023, CS Disco, Inc. was sued for violations of the federal securities laws in the United States District Court for the Southern District of New York on behalf of investors who purchasedshares of CS Disco’s common stock between July 21, 2021, and August 11, 2022, inclusive (the “Class Period”).
Not a real case
On August 30, 2023, AeroVironment, Inc. was sued for violations of the federal securities laws in the United States District Court for the Eastern District of Virginia on behalf of investors who purchased or otherwise acquired AeroVironment securities between June 29, 2021 and December 7, 2021, inclusive (the “Class Period”).
