SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that it filed a class action lawsuit on February 14, 2024, in the U.S. District Court for the Northern District of California (the "Court") on behalf of all persons who purchased or otherwise acquired Amplitude, Inc. ("Amplitude") (NASDAQ: AMPL) stock between September 21, 2021 and February 16, 2022 (the "Class Period"). The complaint alleges violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5, promulgated thereunder. The complaint seeks relief on behalf of the named plaintiff and all other similarly situated holders of Amplitude during the Class Period. The named plaintiff is represented by Robbins LLP.
The Allegations:
Founded in 2012, Amplitude is a technology company that helps businesses analyze data for their digital products and track customer interactions.
During the Class Period, Amplitude claimed to be experiencing extraordinary growth due to "strong demand for [its] products" and a "robust" expansion from existing customers. Specifically, in connection with the Company’s second quarter 2021 (“2Q21”) earnings, Amplitude reported that “revenue growth accelerated” during the quarter and was “up 66% year-over-year.” Moreover, Amplitude's Chief Financial Officer confirmed that such business acceleration was sustainable.
In September 2021, Amplitude conducted its initial public offering via direct listing (the “IPO”). Defendants’ Class Period statements successfully caused the price of Amplitude stock to soar. The stock opened at more than $50 per share on its first day of trading – more than 40% above the established reference price – and reached highs of nearly $90 per share by the end of 2021. While reassuring investors of Amplitude's rapid growth trajectory and ability to sustain outsized gains through the Company's land-and-expand strategy, in the months following the IPO Amplitude's senior management and Company insiders cashed out of more than $275 million in Amplitude stock at artificially inflated prices, including more than $30 million by its CEO and more than $17 million by its CFO.
Almost immediately after, Amplitude’s high-flying stock price crashed. After the market closed on February 16, 2022, Amplitude revealed its fourth quarter 2021 results and revised downward its 2022 fiscal guidance. Most troubling, the Company revealed that its vaunted land-and-expand strategy, which defendants had claimed had already proven successful, was in fact poised to “take a few years” before it was expected to accelerate results and that that Amplitude management “really [did not] know” when this impact would occur. Following this news, the price of Amplitude common stock plunged. After closing at $41.61 per share on February 16, 2022, the stock dropped more than 58% – or $24.51 per share – to close at $17.10 per share on February 17, 2022, on unusually high trading volume of more than 20 million shares traded. The weakness in its land-and-expand strategy has kept the price of Amplitude stock depressed. The price of Amplitude Class A stock currently trades at less than $15 per share, more than 80% below the Class Period high.
Next Steps: If you purchased or otherwise acquired Amplitude, Inc. stock between September 21, 2021 and February 16, 2022, and wish to serve as lead plaintiff, you have up to April 15, 2023, to ask the court to appoint you as the lead plaintiff for the class. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact attorney Aaron Dumas, Jr. of Robbins LLP at (800) 350-6003, via email, or via the shareholder information form on our website. Any member of the Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent Class member. A copy of the complaint can be found here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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