| Court: | United States District Court for the Northern District of California |
| Case Number: | 3:24-cv-02281 |
| Class Period: | 06/24/2021 - 08/08/2023 |
| Case Leaders: | John Rizio-Hamilton, Jonathan D. Uslaner |
| Case Team: | James A. Harrod, Timothy G. Fleming, Sarah Schmidt |
This securities class action lawsuit was brought in the United District Court for the Northern District of California (the “Court”) alleging violations of the federal securities laws by Doximity, Inc. (“Doximity” or the “Company”), and its Chief Executive Officer, Jeffrey Tangney (“Defendants”) on behalf of investors in Doximity common stock.
Lead Plaintiff Has Settled of the Action for $31 Million
Lead Plaintiff, New York City District Council of Carpenters Pension Fund, on behalf of itself and the Settlement Class, has settled the Action for $31,000,000 in cash (the “Settlement”).
On June 10, 2026, the Court held a hearing to consider final approval of the Settlement and other matters. On June 11, 2026, the Court entered a Judgment Approving Class Action Settlement, as well as orders approving the Plan of Allocation and Lead Counsel’s motion for attorneys' fees and litigation expenses.
If you are a member of the Settlement Class, your rights will be affected and you may be eligible for a payment from the Settlement. The Settlement Class consists of:
all persons who purchased or otherwise acquired Doximity common stock during the period from June 24, 2021 through August 8, 2023, inclusive (the “Class Period”), and were damaged thereby.
Certain persons and entities are excluded from the Settlement Class by definition (see paragraph 32 of the Notice) or by request.
Please read the Notice to fully understand your rights and options. Copies of the Notice and Claim Form can be found in the Case Documents list on the right of this page. You may also visit the case website, www.DoximitySecuritiesLitigation.com, for more information about the Settlement.
To be eligible to receive a payment under the Settlement, you must submit a Claim Form postmarked (if mailed) or submitted on-line by no later than July 16, 2026.
Payments to eligible claimants will be made only after the completion of all claims processing. Please be patient, as this process will take some time to complete.
IMPORTANT DATE AND DEADLINE
| July 16, 2026 | Claim Filing Deadline. Claim Forms must be postmarked (if mailed) or submitted on-line no later than July 16, 2026. |
Background and History of the Litigation
Doximity is a social media platform that has referred to itself as the “LinkedIn for doctors.” Doximity invites all U.S. physicians to join its platform, which provides its members with free access to its “Newsfeed” and “telehealth” tools. The Newsfeed, which is the “foundation” of the platform, consists of curated medical articles, videos, and paid advertisements. The telehealth tools include a free “scheduler” and “dialer” that assist doctors in conducting remote visits with their patients. Because Doximity is free to join and use, Doximity’s revenue is almost entirely dependent on advertising dollars from its customers, who include some of the largest pharmaceutical companies in the world. These companies pay Doximity to host advertisements on its Newsfeed, which accounts for more than 90% of the Company’s revenue.
Doximity can only attract and retain the advertising customers it relies on for its revenues if those advertisements reach enough members on its platform. Thus, the number of Doximity members who actually use (and, thus, are “engaged”) on the platform—and particularly its Newsfeed—is central to the Company’s profitability. To evaluate engagement, Defendants directed investors to Doximity’s level of “active members.”
Doximity’s pitch to advertisers and investors alike focused on its ability to deliver high member engagement. Defendants characterized the Company’s member base as its greatest asset and repeatedly represented that this member base included “over 80% of all U.S. physicians as active members.” Defendants additionally told investors each quarter that its member engagement had “increased” across the platform, reaching a new “all-time high.”
Lead Plaintiff’s Consolidated Class Action Complaint (the “Complaint”) alleges that these representations were false and highly misleading. The Complaint alleges that, in truth, Doximity’s base of active members was far less than the “over 80%” that the Company repeatedly touted. In addition, the Complaint alleges, member engagement was not increasing, but rather was declining—including on Newsfeed, the only portion of the platform driving meaningful revenues.
The Class Period begins on June 24, 2021, the day Doximity shares began publicly trading. Defendant Tangney, Doximity’s CEO, started the day by ringing the bell on the New York Stock Exchange to announce Doximity’s launch as a public company. The same morning, he went on CNBC’s TechCheck to tout his newly-public Company to investors. When asked to describe Doximity, one of the first things he said was that “today, we have over 80% of all U.S. physicians as active members on the platform.” He deemed that representation so important that he repeated it just minutes later during the same televised CNBC interview. Doximity’s stock doubled in price that day, with its market capitalization eclipsing $9 billion.
The Complaint alleges that the truth concealed by Defendants’ Class Period misrepresentations was revealed on August 8, 2023, when Doximity reported that it was slashing its revenue guidance for fiscal year 2024. On the investor earnings call that day, Defendants admitted that the reduction in guidance was due to a decline in upsells. They further admitted that customers were increasingly spending their advertising dollars on cheaper banner ads on other social media platforms—a sign that customers did not believe Doximity could deliver the engaged user base it promised. On this news, Doximity’s share price plummeted by nearly 23% in a single day, wiping out over $900 million in shareholder value.
On July 3, 2024, the Court appointed New York City District Council of Carpenters Pension Fund as Lead Plaintiff and BLB&G as Lead Counsel for the potential class. On October 4, 2024, Lead Plaintiff filed the Consolidated Class Action Complaint, which can be found in the Case Documents section immediately to the right of this description.
On May 13, 2025, the Court issued an order denying Defendants’ motion to dismiss, sustaining Sections 10(b) and 20(a) claims against Defendants Doximity and Jeffery Tangney.
Discovery in the Action commenced in June 2025. In response to Lead Plaintiff’s requests for production of documents, Defendants produced over 57,000 pages of documents. Lead Plaintiff also subpoenaed ten third parties. In response to Defendants’ requests, Lead Plaintiff produced over 25,000 pages of documents. Defendants also subpoenaed seven third parties. In addition, the Parties met and conferred and exchanged numerous letters concerning disputed discovery issues over several months.
On August 12, 2025, Lead Plaintiff filed a motion for class certification and appointment of class representative and class counsel, which was accompanied by an expert report from Lead Plaintiff’s expert, Dr. Matthew D. Cain, on market efficiency and common damages methodologies. Defendants filed their opposition to the motion for class certification on September 26, 2025, which was accompanied by an expert report from Defendants’ expert, Dr. Yael Hochberg. In connection with Lead Plaintiff’s motion for class certification, the Parties conducted depositions of Dr. Cain and Dr. Hochberg.
The Parties began exploring the possibility of a settlement in the fall of 2025 while discovery and the briefing of Lead Plaintiff’s class certification motion were ongoing. The Parties agreed to engage in private mediation and retained Jed Melnick of JAMS to act as mediator in the Action (the “Mediator”).
On November 11, 2025, counsel for the Parties participated in a full-day mediation session before the Mediator. While no agreement was reached at the mediation session, the Parties continued their negotiations over the following days and on November 14, 2025, Mr. Melnick made a mediator’s recommendation that the Parties settle the Action for $31,000,000. The Parties accepted the Mediator’s proposal on November 17, 2025 After additional negotiations regarding the specific terms of their agreement, the Parties entered into the Stipulation on December 24, 2025.
On February 25, 2026, the Court preliminarily approved the Settlement, authorized notice of the Settlement to be provided to potential Settlement Class Members, and scheduled the Settlement Hearing to consider whether to grant final approval of the Settlement for June 10, 2026.
On June 10, 2026, the Court held a hearing to consider final approval of the Settlement and other matters. On June 11, 2026, the Court entered a Judgment Approving Class Action Settlement, as well as orders approving the Plan of Allocation and Lead Counsel’s motion for attorneys' fees and litigation expenses.