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.

Investors who purchased or acquired CS Disco securities between July 18, 2021 and August 11, 2022, may no later than November 20, 2023, seek to be appointed as a lead plaintiff representative of the class.