According to the Complaint, DigitalOcean Holdings, Inc. is a technology company that purports to offer a cloud computing platform, primarily for small to medium sized businesses.

After the close of trading on August 3, 2023, DigitalOcean announced a material weakness in its financial reporting that would require the company to restate financial statements contained in its 2022 10-K and 1Q 2023 10-Q, and revealing as false the Individual Defendants’ prior certifications attesting that the Company’s internal controls were effective.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges Defendants misled investors by failing to disclose that: (1) Defendants lacked the skills and experience to assess complicated tax matters and therefore did not design or maintain effective controls over the Company's accounting for income taxes; and (2) that as a result of the foregoing, Defendants' financial statements were inaccurate and materially misleading.

Plaintiff voluntarily dismissed the case on January 4, 2024.