The law firm of Kirby McInerney LLP announces an expanded class period in the class action lawsuit filed on behalf of investors in securities of Digital Turbine, Inc. (“Digital Turbine” or the “Company”) (NASDAQ: APPS) from February 26, 2021 through May 31, 2022, both dates inclusive (the “Class Period”). Investors have until August 5, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Digital Turbine is a software company that delivers products to assist third parties in monetizing through the utilization of mobile advertising. The Company completed the acquisitions of AdColony Holdings AS (“AdColony”) and Fyber N.V. (“Fyber”) on April 29 and May 25, 2021, respectively.
On May 17, 2022, Digital Turbine issued a press release revealing that it will “restate its financial statements for the interim periods ended June 30, 2021, September 30, 2021, and December 31, 2021, following a review of the presentation of revenue net of license fees and revenue share for the Company’s recently acquired businesses.” On this news, the price of Digital Turbine shares declined by $1.93 per share, or approximately 7.09%, from $27.21 per share to close at $25.28 on May 18, 2022.
On May 31, 2022, Digital Turbine issued a press release announcing the Company’s Q4 and fiscal year 2022 financial results, in which the Company provided an earnings per share figure that missed consensus estimates and a weak revenue forecast. On this news, the price of Digital Turbine shares declined by $5.75 per share, or approximately 22.61%, from $25.43 per share to close at $19.68 on June 1, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s recent acquisitions, AdColony and Fyber, act as agents in certain of their respective product lines; (2) as a result, revenues for those product lines must be reported net of license fees and revenue share, rather than on a gross basis; (3) the Company’s internal control over financial reporting as to revenue recognition was deficient; and (4) as a result of the foregoing, the Company’s net revenues was overstated throughout fiscal 2022; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Digital Turbine securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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