LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), announces that it has filed a class action lawsuit in the United States District Court for the Western District of Texas captioned Robison c. Digital Turbine, Inc., et al., Case No. 22-cv-550, on behalf of the persons and entities that purchased or otherwise acquired Digital Turbine, Inc. (“Digital Turbine” or the “Company”) (NASDAQ: APPLICATIONS) titles between August 9, 2021 and May 17, 2022, inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby informed that they have 60 days from this notice ask the Court to serve as lead plaintiff in this action.
If you have suffered a loss on your investments in Digital Turbine or would like to inquire about possible claims to recover your loss under federal securities laws, you may submit your contact information to www.glancylaw.com/cases/digital-turbine-inc/. You may also contact Charles H. Linehan, of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at [email protected] or visit our website at www.glancylaw.com to find out more about your rights.
Digital Turbine is a software company that provides products to help third parties monetize through the use of mobile advertising. The Company completed the acquisitions of AdColony Holdings AS (“AdColony”) and Fyber NV (“Fyber”) on April 29 and May 25, 2021, respectively.
On May 17, 2022, Digital Turbine issued a press release disclosing that it “will restate its financial statements for the interim periods ended June 30, 2021, September 30, 2021 and December 31, 2021, following a review of the presentation of the financial net of license fees and revenue share for the business recently acquired by the company.”
Following the news, shares of the company fell $1.93, or 7.1%, to close at $25.28 per share on May 18, 2022, on unusually high trading volume.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) that the company’s recent acquisitions, AdColony and Fyber, act as agents in some of their respective product lines; (2) that, therefore, revenues from these product lines should be reported net of license fees and revenue sharing, rather than on a gross basis; (3) that the Company’s internal control over financial reporting relating to revenue recognition was deficient; and (4) that as a result of the foregoing, the Company’s net revenues were overstated throughout fiscal 2022; and (5) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
If you purchased or otherwise acquired Digital Turbine securities during the Class Period, you may bring an action in court no later than 60 days from this notice ask the Tribunal to appoint you as the principal plaintiff. To be a member of the Group, you do not have to perform any action at the moment; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the Class. If you would like to know more about this action, or if you have any questions about this announcement or your rights or interests in respect of these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected], or visit our website at www.glancylaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.
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