Doximity Inc. executives and board members inflated the company’s active user base and website engagement growth data, artificially bolstering its advertising deals’ revenue before a record selloff in 2023, a shareholder lawsuit said.
Doximity, described as a “LinkedIn for doctors,” then lowered its revenue forecast for 2024 by $32 million and announced it would layoff 10% of its workforce on Aug. 8, 2023, said the stockholder’s complaint filed in the US District Court for the District of Delaware on Wednesday. Leadership that day attributed the cuts to a decline in upsells and slowing sales among its pharmaceutical customers, said the ...
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