DigitalOcean Board Sued for Allegedly Misleading on Accounting

DigitalOcean Holdings Inc.’s directors allegedly misled investors about the company’s accounting controls and ability to assess complex tax transactions for six months, according to a shareholder derivative suit.

The cloud computing company revealed issues in its consolidated financial statements on Aug. 3, including an $18 million overstatement of income tax expense for the quarter. The board allegedly concealed material weaknesses in DigitalOcean’s internal controls and accounting procedures from the public since February, according to the suit filed Tuesday in US District Court for the District of Delaware.

DigitalOcean issued a press release on Feb. 16 containing alleged misrepresentations about ...