Doximity $31 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Doximity Inc. common stock between June 24, 2021, and Aug. 8, 2023, and suffered damages as a result may be eligible to claim a cash payment from a class action settlement.

Doximity Inc. and its chief executive officer, Jeffrey Tangney, agreed to pay $31 million to settle a securities class action lawsuit alleging they made materially false and misleading statements to investors about the percentage of doctors who were "active members" on the Doximity platform and record-high engagement levels during certain quarters.

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Doximity common stock between June 24, 2021, and Aug. 8, 2023, inclusive, and suffered damages as a result.

Additional details

• Both individuals and entities can be class members.
• Each separate legal entity or separately managed account must submit a separate claim.
• Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide evidence of their authority.
• Participants in and beneficiaries of a Doximity employee benefit plan covered by ERISA should not include Doximity stock transactions made through the plan on an individual claim form.
• Plan trustees must submit claims for employee plan transactions.

How much can class members get?

The total settlement fund is $31,000,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average recovery is approximately $0.32 per eligible share before deductions for attorneys' fees, expenses, taxes and administration costs. After estimated deductions of approximately $0.09 per share, the net average recovery is approximately $0.23 per share.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation.
• For shares sold before the close of trading on Aug. 8, 2023, the recognized loss is $0.
• For shares sold from Aug. 9, 2023, through the close of trading on Nov. 6, 2023, the recognized loss is the least of $7.16, the purchase price minus the average closing price from Aug. 9, 2023, through the date of sale (Page 17 of the class notice) or the purchase price minus the sale price.
• For shares held as of the close of trading on Nov. 6, 2023, the recognized loss is the lesser of $7.16 or the purchase price minus $22.12 (the mean closing price during the 90-day look-back period).

• The settlement administrator will set any recognized loss that calculates to a negative number to $0.
• If total recognized losses exceed the fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a Doximity securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is July 16, 2026.

Settlement administrator's mailing address: Doximity Securities Litigation, c/o A.B. Data Ltd., P.O. Box 173117, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings, purchase, acquisition and sale information, including:

• Holdings of Doximity common stock as of the opening of trading on June 24, 2021
• Purchases and acquisitions of Doximity common stock from June 24, 2021, through Aug. 8, 2023
• Purchases and acquisitions of Doximity common stock from Aug. 9, 2023, through Nov. 6, 2023
• Sales of Doximity common stock from June 24, 2021, through Nov. 6, 2023
• Holdings of Doximity common stock as of the close of trading on Nov. 6, 2023

Class members must also provide documentation to support their transactions in Doximity common stock. Acceptable proof includes:

• Trade confirmation slips
• Monthly brokerage account statements
• Authorized statements from a broker or financial institution containing the transactional and holding information found in a trade confirmation slip or account statement

Payout options

• Physical check

$31 million settlement fund

The $31,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $7,750,000
• Attorneys' expenses: Up to $850,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: May 20, 2026
• Fairness hearing: June 10, 2026
• Deadline to file a claim: July 16, 2026

When is the Doximity securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit claimed Doximity and its CEO misled investors by overstating the share of doctors who actively used the platform and portraying engagement levels as record highs during certain periods. The plaintiffs claimed these misrepresentations artificially inflated the stock price and caused investor losses when the company issued corrective information.

Doximity denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form