Doximity’s $31 Million Investor Settlement Clears Initial Hurdle

Doximity Inc. deserves preliminary approval for an agreement to pay investors $31 million to settle a proposed securities class action over its professional social network’s metrics, a federal court ruled.

Judge Noël Wise said Wednesday that she would likely be able to grant final approval after a June hearing in the US District Court for the Northern District of California.

• According to the complaint, Doximity misleadingly claimed that more than 80% of US physicians were using its platform, which was described as a “LinkedIn for doctors”
• Slashed revenue guidance in August 2023 led to a 23% stock drop, and analysts ...