DocuSign Downplayed Pandemic’s Effect on Growth, Investors Say

DocuSign Inc. made misleading statements about how the pandemic increased demand for its products and downplayed the effect a return to in-person activities would have, investors allege in federal court in New York.

The cloud-based software company, which enables people to electronically sign legal documents, didn’t disclose that the coronavirus pandemic’s effect on its business was “positive, not negative,” as people looked for ways to move work online, according to a would-be class complaint filed in the U.S. District Court for the Eastern District of New York.

DocuSign also de-emphasized how a “return to normal” would change its growth and ...