Shareholder rights law firm Robbins LLP is investigating the officers and directors of Digital Turbine, Inc. (NASDAQ: APPS) to determine whether they breached their fiduciary duties and violated securities laws in connection with the Company's need to restate its financial statements for fiscal 2022. Digital Turbine is a software company that delivers products to assist third parties in monetizing through the initialization of mobile advertising.
If you would like more information about our investigation into Digital Turbine, Inc.'s misconduct, click here.
What is this Case About: According to a complaint filed against Digital Turbine, the Company completed the acquisitions of AdColony Holdings AS (“AdColony”) and Fyber N.V. (“Fyber”) on April 29 and May 25, 2021, respectively.
During the class period, defendants failed to disclose to investors that the Company’s recent acquisitions act as agents in certain of their respective product lines, and as such, revenues for those product lines must be reported net of license fees and revenue share, rather than on a gross basis. However, the Company’s internal control over financial reporting as to revenue recognition was deficient, and as a result, the Company’s net revenues were overstated throughout fiscal 2022.
On May 17, 2022, Digital Turbine issued a press release revealing 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 revenue net of license fees and revenue share for the Company’s recently acquired businesses." On this news, the Company’s shares fell $1.93, or 7.1%, to close at $25.28 per share on May 18, 2022, on unusually heavy trading volume.
Next Steps: If you acquired shares of Digital Turbine, Inc. securities between August 9, 2021 and May 17, 2022, you have legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: 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. To be notified if a class action against Digital Turbine, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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