Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Feb. 22, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Amplitude, Inc. (NASDAQ: AMPL) investors that a lawsuit was filed on behalf of investors that purchased Amplitude securities between September 21, 2021 and February 16, 2022, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The class action lawsuit against Amplitude claims that during the Class Period, the company made inaccurate or misleading statements and failed to disclose certain critical information. Specifically, it is alleged that Amplitude's strategy to grow its business by securing new clients and then expanding those relationships (land-and-expand) was not close to significantly boosting revenue among its newer client groups. Moreover, the lawsuit contends that the notable increase in Amplitude's revenue during the second quarter of 2021 was a temporary effect of the COVID-19 pandemic, which did not persist into the Class Period. This resulted in a slower expansion rate among Amplitude clients than previously indicated.
On February 16, 2022, Amplitude adjusted its revenue forecast for 2022 downwards, from an expected growth of over 40% to a projected range of $226 million to $234 million, indicating a growth rate of 35% to 40%. Following this announcement, during an earnings call, Amplitude's CFO, Hoang Vuong, acknowledged that it would take several more years for many of the company's new clients to fully utilize Amplitude's digital optimization capabilities, which would in turn drive significant expansion. This revelation led to a nearly 59% drop in the value of Amplitude's stock.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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