DocuSign Inc. must face a securities fraud lawsuit accusing the e-signature software developer of falsely reassuring investors that increased demand for its product during the Covid pandemic was sustainable.
Many of DocuSign’s allegedly misleading statements were forward-looking, but they aren’t shielded from a lawsuit because the company didn’t include adequately cautionary language, Judge William Orrick in the US District Court for the Northern District of California said Tuesday, denying DocuSign’s motion to dismiss.
The plaintiff investors allege in the suit that DocuSign knew the spike in demand wouldn’t last after the pandemic. Several customers told DocuSign they weren’t going to ...
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