Data analysis firm Amplitude has been accused in a class action lawsuit of allegedly tanking its own stock through a mass sell-off of stocks held by company executives shortly after the company went public.
The investors allege that the executives improperly sold off stocks after the initial public offering, causing a significant decrease in value.
According to the complaint, Amplitude's stock opened at $50 a share on Sept. 28, 2021, and increased to $90 a share by the end of 2021. However, the lawsuit alleges company leadership sold off $275 million in stock at "artificially inflated prices," and by February 2022, the stock price had dropped 80% from its peak, costing other investors millions.
Named plaintiff Daniel Fagan filed the suit in San Francisco federal court on Feb. 14.
Fagan seeks to expand the lawsuit include all those who purchased or acquired Amplitude stock between September 21, 2021 and February 16, 2022. Fagan alleges that the defendants violated the federal Securities Exchange Act and SEC Rule 10b-5.
The plaintiffs are represented by attorneys Shawn A. Williams and Brian E. Cochran, of the firm of Robbins Geller Rudman & Dowd, of San Francisco and San Diego.