In re Dropbox Securities Litigation

I. BACKGROUND

1 Dropbox is a software and technology company, founded in 2007, and is commonly known 2 for its eponymous filesharing service. Complaint (“Compl.”) ¶¶ 24-25, ECF 1. Dropbox’s Class A 3 common stock trades on the NASDAQ under the ticker symbol “DBX.” Id. ¶ 24. On February 23, 4 2018, Dropbox filed a registration statement for the IPO on Form S-1, which, after several 5 amendments, was declared effective on March 22, 2018 (the “Registration Statement”). Id. ¶ 29. 6 The Complaint alleges that the Registration Statement “was negligently prepared and, as a result, 7 contained untrue statements of material fact or omitted to state other facts necessary to make the 8 statements made not misleading and was not prepared in accordance with the rules and regulations 9 governing its preparation.” Id. ¶ 30. According to the Complaint, once “the truth” emerged, Dropbox’s stock fell 16% from the IPO price. Id. ¶ 42. On October 4, 2019, Plaintiff Jason Michael Deinnocentis filed this class action lawsuit individually and on behalf of all persons who purchased Dropbox Class A common stock pursuant or traceable to the Registration Statement. …