Amplitude, Inc. Hit with Multiple Lawsuits Over Misleading Growth Claims

Investors allege the company's optimistic growth projections were unfounded, leading to significant stock losses.

Amplitude, Inc. faces multiple class action lawsuits for allegedly misleading investors about its growth prospects and financial health.
The lawsuits claim Amplitude's land-and-expand strategy was not as close to significantly boosting revenue as suggested, and its rapid growth in Q2 2021 was temporary.
Investors were misled into believing in sustainable growth, leading to insider selling at inflated prices before a significant stock price drop in February 2022.
Amplitude's stock plummeted over 58% following the announcement of its Q4 2021 results and revised 2022 fiscal guidance.
Legal firms are urging affected investors to join the lawsuits to recover losses, with deadlines for lead plaintiff applications in April 2024.