Philadelphia, Pennsylvania--(Newsfile Corp. - September 25, 2023) - Berger Montague advises investors that a securities fraud class action lawsuit has been filed against CS Disco, Inc. ("CS Disco") (NYSE: LAW) on behalf of purchasers of CS Disco's publicly traded securities between July 18, 2021 and August 11, 2022, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired CS Disco securities during the Class Period may, no later than November 20, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/cs-disco/.
CS Disco, based in Austin, TX, provides cloud-native and AI-powered legal solutions for ediscovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments.
According to the complaint filed in this action, throughout the Class Period, "CS Disco repeatedly touted strong growth in its revenues attributable to customer usage of its cloud-based electronic discovery platform and asserted that it had good advance visibility into changes in the demand from individual customers over time."
The suit further alleges that, "[w]hile the Company also acknowledged that its rapid revenue growth was 'usage driven' and may be subject to volatility, it did not inform investors during the Class Period that it had any indication of significant headwinds to its growth."
The lawsuit alleges that the truth about the Company began to emerge on August 11, 2022, when CS Disco issued its financial results for the second quarter 2022. The Company's filing revealed that, contrary to its Class Period representations, its revenue growth had tapered dramatically compared with prior quarters, and further, it would no longer include in its financial guidance for the year any revenues attributable to its largest customers. In response to this news, CS Disco shares fell 53% on August 12, 2022, on abnormally high volume.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
[email protected]
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/181509