Grabar Law Office is investigating potential claims on behalf of long-term shareholders of Doximity, Inc. (NYSE: DOCS) concerning whether certain of the Company’s officers and directors breached fiduciary duties owed to the Company.

The investigation follows the filing of a federal securities class action, Michigan Laborers’ Pension Fund v. Doximity Inc., et al., Case No. 3:26-cv-10529, in the United States District Court for the Northern District of California.

What Is This Investigation About?

Doximity, Inc. (NYSE: DOCS) operates a digital platform for medical professionals that combines healthcare news, workflow products and clinician networking. The Company generates most of its revenue by selling marketing subscriptions to customers, including pharmaceutical companies and hospitals, with much of that advertising appearing on Doximity’s Newsfeed.

According to the recently filed securities fraud complaint, Doximity, through certain of its officers, distinguished its advertising platform by emphasizing what it described as “deep engagement”—users affirmatively clicking on advertisements or sponsored content—as opposed to the more passive advertising models used by competitors. It is alleged that Doximity repeatedly attributed its growth to record engagement on its Newsfeed and represented that it was gaining market share against competitors.

The complaint alleges, however, that these statements were materially false or misleading because Doximity allegedly:

• overstated the impact of its Newsfeed on revenue growth;
• was losing market share to competitors offering more favorable pricing and engagement models; and
• despite statements emphasizing its “deep engagement” model, was also utilizing banner advertisements and e-newsletters or similar “light engagement” advertising methods.

The complaint specifically alleges that, during a May 15, 2025 earnings call, Chief Executive Officer Jeffrey Tangney stated that Doximity did not have an e-newsletter product.

What Happened?

According to the complaint, investors began to learn of the alleged problems through a series of disclosures.

On November 6, 2025, Doximity expressed caution regarding the outlook for advertising spending and indicated a slowdown in sales growth during the second half of fiscal 2026. The complaint alleges that Doximity's share price declined $8.29 per share, or 13%, following these disclosures.

On February 5, 2026, Doximity lowered its fiscal 2026 revenue guidance and reported that sales growth had decelerated while net income had contracted. Analysts subsequently raised concerns that the Company's slowing growth could reflect a loss of market share to competitors. Doximity's shares allegedly declined another $5.59 per share, or 17%.

Finally, on May 13, 2026, Doximity announced that it had missed its already-reduced revenue guidance and projected significantly slower growth for fiscal 2027. According to the complaint, Doximity's stock fell another 23%, from $23.39 on May 13 to $18.01 on May 14, 2026.

Grabar Law Office's Investigation

Grabar Law Office is investigating whether Doximity's officers and directors caused or permitted the Company to make allegedly false or misleading statements, failed to adequately oversee the Company's operations and public disclosures, or otherwise breached fiduciary duties owed to Doximity and its shareholders.

The securities complaint alleges that CEO Jeffrey Tangney and former CFO Anna Bryson had access to the Company's internal data, including an internal dashboard, and contends that the defendants knew or recklessly disregarded that Doximity was misrepresenting the impact of its Newsfeed on revenue growth and its competitive position. These allegations have not been proven.

A shareholder derivative action is different from the pending securities class action. A derivative action is brought by a shareholder on behalf of the Company and may seek to hold officers or directors accountable for harm allegedly caused to the corporation. Potential relief may include corporate governance reforms, changes to internal controls, and the recovery of funds for the benefit of the Company.

What Can You Do Now?

If you purchased or otherwise acquired Doximity (NYSE: DOCS) shares before August 8, 2024 and continue to hold shares today, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.  Please contact Joshua H. Grabar at jgrabar@grabarlaw.com, or call 267-507-6085 to learn more. Alternatively, if you purchased Doximity common stock between August 8, 2024 and May 13, 2026, you can participate in the class action.

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Contact:

Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: jgrabar@grabarlaw.com
www.grabarlaw.com