DocuSign Faces Two Lawsuits, Including a Securities Fraud Claim
DocuSign, the e-signature giant, is facing two lawsuits, including a securities fraud claim by investors and a wrongful termination suit by its former CEO.
Securities Fraud Lawsuit
In April 2023, a federal judge in California denied DocuSign’s motion to dismiss a securities fraud lawsuit filed by investors. The lawsuit alleges that DocuSign misled investors about the sustainability of its growth during the COVID-19 pandemic.
The investors allege that DocuSign knew that the spike in demand for its e-signature software during the pandemic was temporary, but that the company continued to make public statements that suggested that the growth would continue. As a result, the investors claim that they lost money when DocuSign’s stock price fell sharply after the pandemic.
DocuSign has denied the allegations in the lawsuit, and the case is still ongoing.
Wrongful Termination Lawsuit
In January 2023, DocuSign’s former CEO, Daniel Springer, filed a wrongful termination lawsuit against the company and its board chair, Mary Wilderotter. Springer was fired in June 2022, but he alleges that the company fabricated a board resignation in order to remove him from his seat.
Springer claims that Wilderotter issued a securities filing in October 2022 falsely stating that he had stepped down from the board. Springer alleges that he had never resigned, and that the company did not have the authority to remove him from the board.
Springer is seeking damages and reinstatement to his board seat. DocuSign has denied the allegations in the lawsuit, and the case is still ongoing.
Conclusion
DocuSign is facing two significant lawsuits, one from investors and one from its former CEO. The outcome of these lawsuits could have a major impact on the company and its future.
References:
- DocuSign Must Face Investor Suit Over Post-Covid Demand Outlook: https://news.bloomberglaw.com/securities-law/docusign-must-face-investor-suit-over-post-covid-demand-outlook
- DocuSign Ex-CEO Claims Company Fabricated Board Resignation: https://news.bloomberglaw.com/esg/docusign-ex-ceo-claims-company-fabricated-his-board-resignation