Two US-based securities class action law firms have announced that they are launching investigations into DISCO after the NYSE-listed eDiscovery vendor announced on Monday, 11 September that CEO and founder Kiwi Camara is to step down, sending its stocks plummeting in value.
National shareholder rights litigation firm The Schall Law Firm announced on 12 September that it is acting on behalf of investors to investigate whether DISCO, incorporated as CS Disco, has committed violations of US securities laws. Specifically, it is launching an investigation into whether DISCO “issued false and/or misleading statements and/or failed to disclose information pertinent to investors.” The Schall Law Firm is asking that shareholders who suffered a loss to contact them.
Yesterday (13 September) Boston-headquartered class action law firm Berman Tabacco said that it is also “investigating potential securities law violations by CS Disco”, saying: “Shares of CS Disco are down 26% in early trading Tuesday after the company’s co-founder and CEO, Kiwi Camara, announced he will step down as the chief executive and as a member of the board.” Berman Tabacco is also encouraging anyone who purchased shares of CS Disco and has suffered losses or has information concerning the investigation to contact them.
We have reached out to DISCO for comment.
DISCO announced on 11 September that Scott Hill will take over from Camara as interim CEO while the board of directors searches for a permanent successor.