Law360 (October 21, 2020, 6:47 PM EDT) -- A California judge on Wednesday tossed a proposed class action over Dropbox Inc.'s initial public offering that accused the cloud-based storage company of hiding a slowdown in the rate at which it converted nonpaying accounts to paying accounts.
Lead plaintiff Ognjen Kuraica said the registration statement Dropbox filed for its March 2018 IPO represented that the company had been successful and would continue to be successful in converting its registered, non-paying accounts to paying accounts.
But the company and its executives didn't disclose that its conversion rate was decelerating, causing Dropbox's revenue growth to slow, the suit alleged.
U.S. District Judge...
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