| COMPANY |
Amplitude, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
24-cv-00898 |
| JUDGE |
The Hon. Vince Girdhari Chhabria |
| CLASS PERIOD |
September 21, 2021 through February 16, 2022 |
| SECURITY TYPE |
Securities |
Amplitude investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than April 15, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Amplitude, Inc. (“Amplitude”) (NASDAQ: AMPL) securities between September 21, 2021 and February 16, 2022, both dates inclusive (the “Class Period”).
Case Background:
Amplitude is a technology company that helps businesses analyze data for their digital products and tracks customer interactions.
On September 21, 2021, Amplitude issued a press release announcing its financial results for Q2 2021. In the release, Amplitude highlighted several metrics that purportedly showed favorable growth at the company, including 66% quarterly revenue growth. Amplitude also stated that it expects that its full year 2022 total revenue growth will be in excess of 40%. The company also hosted an earnings call led in part by defendant Vuong, who emphasized that “Expansion from existing customers were particularly robust as the team continued to execute well on our land-and-expand strategy.”
A week later, on September 28, 2021, Amplitude filed documents with the SEC in connection with its IPO through a direct listing, wherein the company continued to tout its land-and-expand strategy as one of its primary “Growth Strategies.” The following day in an online AMA, defendant Skates highlighted that the company was experiencing explosive revenue growth. Thereafter, Amplitude continued to tout its growth and continued successful execution of its land-and-expand strategy.
Then, after the market closed on February 16, 2022, the truth was revealed when Amplitude revised downward its 2022 revenue guidance, from more than 40% to a range of $226 million to $234 million (or 35% to 40%). During the earnings call that followed, Amplitude’s CFO stated that it was still “a few years” away from many of its new customers, “completely embrac[ing] the full capability of [Amplitude’s] digital optimization,” which he stated would eventually “drive larger expansion.” After closing at $41.61 per share on February 16, 2022, the stock opened at $26 per share on February 17, 2022, 37% lower than its prior close, and continued dropping throughout the day, ultimately closing at $17.10, down nearly 59% on elevated trading volume of more than 20 million shares traded.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Amplitude’s land-and-expand strategy was years away from significantly accelerating revenues among its newer client cohorts; (2) the rapid acceleration in Amplitude’s second quarter 2021 results resulted from the ephemeral effects of the COVID-19 pandemic which had not continued by the start of the Class Period, as Amplitude clients were expanding at a slower pace; and (3) as a result, Amplitude’s business, operations, financial results, and prospects were materially worse than represented to investors during the Class Period.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or 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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.