AMPL INVESTOR ALERT: Edelson Lechtzin LLP Urges Amplitude, Inc. (NASDAQ: AMPL) Shareholders with Substantial Losses to Move for Lead Plaintiff in the Pending Securities Fraud Class Action
NEWTOWN, PA, February 20, 2024 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of purchasers of Amplitude, Inc. (NASDAQ: AMPL) common stock between September 21, 2021, and February 16, 2022, inclusive (the “Class Period”).
Investors who purchased Amplitude common stock may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff, no later than April 15, 2024. Current holders of Amplitude stock may also pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Amplitude, Inc.
Founded in 2014, and headquartered in San Francisco, Amplitude, Inc. is a publicly traded company that develops digital analytics software.
The Securities Fraud Claims
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or omissions regarding Amplitude’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Amplitude’s land-and-expand strategy was years away from significantly accelerating revenues among its newer client cohorts; and (ii) the rapid acceleration in Amplitude’s second quarter or 2021 results resulted from ephemeral effects of the COVID-19 pandemic had ended by the start of the Class Period, and Amplitude clients were expanding at a slower pace.
On February 16, 2022, after the market closed, Amplitude announced its financial results for the fourth quarter of 2021 and revised its guidance for 2022 downwards. The most concerning aspect of the announcement was that the Company’s land-and-expand strategy, which Defendants had claimed was already performing well, was expected to take several years before it could accelerate results. Despite previous promises of sustainable growth, Amplitude management admitted that they did not know when the impact of the strategy would be felt.
On 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.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Web: www.edelson-law.com
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Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.