A class action lawsuit was filed against Amplitude, Inc. (NASDAQ:AMPL) on February 14, 2024. The plaintiffs (shareholders) allege that they bought Amplitude stock at artificially inflated prices between September 21, 2021 and February 16, 2022 (Class Period) and are now seeking compensation for the financial losses on the stock. Investors who bought AMPL stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/amplitude-lawsuit-submission-form?wire=16
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Amplitude, Inc. is a digital analytics platform that analyzes customer behavior. The company helps enterprises connect digital products to business outcomes, thus, optimizing their business value. Amplitude is accused of deceiving investors by withholding facts and vital information about the company’s business practices, financial results, and prospects during the Class Period. The plaintiffs maintain that the company repeatedly omitted truthful information about certain business strategies and financial results from the SEC filings and related material.
One such instance of the company’s alleged misdemeanors was during the Q4 FY21 earnings call when the then-CFO clarified that the company was still “a few years” away from many of its new customers “completely embracing the full capability of [Amplitude’s] digital optimization,” which he stated would eventually “drive larger expansion.”
This was in stark contrast to the tall claims made by the company just before the Class Period. Specifically, during an earnings call, the then-CFO claimed that “Expansion from existing customers were particularly robust as the team continued to execute well on our land-and-expand strategy.”
As per the class action lawsuit, Amplitude had caused the AMPL stock to trade at artificially inflated prices by knowingly and recklessly misguiding investors about the company’s business and financial position.
Since its initial listing, AMPL stock has lost over 78%, massively impacting the plaintiff’s holding value.
