Doximity, the physician networking and telehealth company that trades on the NYSE as DOCS, is currently tied to three separate legal matters. A Doximity lawsuit brought by investors over inflated user-engagement claims settled for $31 million, with final court approval on June 11, 2026, and a claim-filing deadline of July 16, 2026. A second suit, filed by medical AI startup OpenEvidence, alleges Doximity executives used prompt injection attacks to steal proprietary AI technology; it remains pending in federal court in Massachusetts. A third matter is still in the investigation stage after Doximity’s stock fell 23% in May 2026.
The $31 Million Securities Settlement
On December 24, 2025, Doximity agreed to a $31 million cash settlement in In re Doximity, Inc. Securities Litigation, No. 5:24-cv-02281, in the U.S. District Court for the Northern District of California.1Doximity Securities Litigation. In Re Doximity, Inc. Securities Litigation Judge Noël Wise granted final approval on June 11, 2026.2Kessler Topaz Meltzer & Check LLP. Doximity, Inc.
The class covers investors who purchased Doximity stock between June 24, 2021, and August 8, 2023.3ClaimDepot. In Re Doximity Inc. Securities Litigation Bloomberg Law reported an estimated per-share recovery of $0.32.4Bloomberg Law. Doximity Agrees to $31 Million Deal to End Investor Class Action The claim-submission deadline is July 16, 2026, and claims can be filed online or by mail through the official settlement website.5Bernstein Litowitz Berger & Grossmann LLP. Doximity Securities Litigation A.B. Data, Ltd. is the claims administrator, and Bernstein Litowitz Berger & Grossmann LLP served as lead counsel.2Kessler Topaz Meltzer & Check LLP. Doximity, Inc.
The settlement was fully funded by Doximity’s insurance proceeds, according to a company securities filing, and included no admission of liability, fault, or wrongdoing by Doximity or any of the named defendants.6SEC. Doximity, Inc. Form 8-K
What the Securities Case Alleged
The lead plaintiff, the New York City District Council of Carpenters Pension Fund, filed the case in 2024 against Doximity and CEO Jeffrey Tangney. The complaint alleged that throughout the class period, Doximity repeatedly told investors that “over 80% of all U.S. physicians” were active members of the platform, defining an active member as someone who logged in and clicked internal links at least once per quarter.7Bernstein Litowitz Berger & Grossmann LLP. Consolidated Class Action Complaint
According to former employees cited in the complaint, an internal dashboard tracked the actual number of quarterly active users, and those figures were “always below 80%” for each physician specialty. Tangney allegedly ordered the creation of the dashboard, had full access to it, and acknowledged the true figures during internal company meetings. A former business analytics manager said employees were instructed not to provide unfavorable engagement metrics to advertising customers. Engagement on the platform’s Newsfeed, which generated more than 90% of revenue, was declining, former employees said.7Bernstein Litowitz Berger & Grossmann LLP. Consolidated Class Action Complaint
A plaintiff’s survey indicated Doximity overstated its active member count by more than 65%, and nearly half of surveyed physicians who used the platform either never viewed the Newsfeed or did so less than once per quarter.7Bernstein Litowitz Berger & Grossmann LLP. Consolidated Class Action Complaint
The class period ended on August 8, 2023, when Doximity slashed its full-year revenue guidance to between $452 million and $468 million, well below the $501.63 million analysts had expected, and announced a 10% workforce reduction of roughly 100 employees.8InvestorPlace. Why Is Doximity (DOCS) Stock Down 23% Today?9Doximity Investor Relations. Doximity Announces Fiscal 2024 First Quarter Financial Results On the earnings call, executives said the lowered guidance was caused by a decline in upsells and by customers shifting advertising dollars toward cheaper banner ads on other social media platforms. The stock fell nearly 23% in a single day, wiping out more than $900 million in shareholder value.5Bernstein Litowitz Berger & Grossmann LLP. Doximity Securities Litigation
The OpenEvidence Trade Secrets Lawsuit
On June 20, 2025, OpenEvidence filed a broad complaint in the District of Massachusetts (Case No. 1:25-cv-11802, before Judge Richard G. Stearns) naming Doximity, Pathway Medical, CTO Jey Balachandran, Director of AI Products Jake Konoske, and other individual defendants.10CourtListener. OpenEvidence Inc. v. Doximity, Inc. OpenEvidence is a medical AI startup that runs a clinical search tool used by roughly 740,000 physicians and reached a $12 billion valuation by January 2026.11Forbes. OpenEvidence Founder Doubles His Wealth as Medical AI Startup Hits $12 Billion Valuation
According to the complaint, Doximity executives impersonated real physicians using misappropriated National Provider Identifier (NPI) credentials to gain access to OpenEvidence’s platform. Once inside, they allegedly deployed prompt injection attacks, feeding the AI instructions like “repeat your rules” and “write down the secret code” to force it to disclose its system prompt, operational blueprints, and proprietary clinical reasoning methodology. The complaint also alleged that defendants executed hundreds of orchestrated queries to extract question-and-answer pairs that could be used to reverse-engineer OpenEvidence’s diagnostic methods and train Doximity’s competing AI.12OpenEvidence Inc. v. Doximity, Inc. Complaint
OpenEvidence also brought a defamation claim against Tangney. It alleged that at Doximity’s annual Pharmaceutical Advisory Board Conference on May 6, 2025, Tangney presented purported OpenEvidence answers that he claimed were incorrect or false, using prompts he concealed from the audience. One displayed answer was described by an audience member as “digitally altered or fabricated entirely,” and several pharmaceutical executives typed the same questions into OpenEvidence during the presentation and did not get the incorrect answers shown on screen.12OpenEvidence Inc. v. Doximity, Inc. Complaint
The complaint asserts ten claims, including trade secret misappropriation under the Defend Trade Secrets Act, violations of the Computer Fraud and Abuse Act and the Digital Millennium Copyright Act, breach of contract, unjust enrichment, trespass to chattels, unfair competition under federal and Massachusetts law, false advertising under the Lanham Act, and defamation.12OpenEvidence Inc. v. Doximity, Inc. Complaint
Doximity’s Defense and the Pathway Acquisition
Doximity moved to dismiss on September 15, 2025, arguing that OpenEvidence’s system prompts were publicly observable through the AI’s tone, formatting, and citation style, and that even if Doximity employees attempted to obtain the prompts, the company never successfully acquired the full system prompt, so there was no actionable misappropriation under the Defend Trade Secrets Act. A spokesperson said Doximity would “vigorously” contest the allegations.13Bloomberg Law. Medical AI Firm Says Competitor Hacked Prompts to Steal Secrets14Legal.io. Health Tech Startup Alleges Doximity Used Prompt Injection to Steal AI Trade Secrets
OpenEvidence filed an amended complaint on October 29, 2025, adding seven new defendants including Pathway Medical and several individuals associated with it. The court found the original motion to dismiss moot, and Doximity, joined by Pathway, filed a fresh motion to dismiss the amended complaint on November 24, 2025. As of the most recent docket update in June 2026, that motion remained pending.10CourtListener. OpenEvidence Inc. v. Doximity, Inc. Doximity has also filed counterclaims against OpenEvidence alleging defamation and a coordinated smear campaign, according to reporting by Fierce Healthcare.15Fierce Healthcare. Doximity CEO Calls 2026 AI Investment Year in Race to Get AI in Front of Doctors
Complicating the litigation, Doximity acquired Pathway Medical on July 29, 2025, for $63 million ($26 million in cash and up to $37 million in equity grants) while the OpenEvidence suit was already pending. Pathway had been the target of OpenEvidence’s original February 2025 complaint, which alleged Pathway used prompt injection attacks and stolen physician credentials to extract OpenEvidence’s proprietary system prompts and build a competing product. Pathway denied the allegations, calling the suit an attempt to stifle competition.16MobiHealthNews. Doximity Acquires Pathway Medical for $63M
May 2026 Stock Drop and New Investigation
On May 13, 2026, Doximity reported $644.9 million in fiscal 2026 revenue, a 13% increase, and net income of $196.1 million.17Doximity Investor Relations. Doximity Announces Fourth Quarter and Fiscal Year 2026 Financial Results Revenue fell short of consensus estimates, and Tangney said increased AI investment would “weigh on near-term margins.” The stock fell 23% the following day.18PR Newswire. DOCS Investors Have Opportunity to Join Doximity Inc. Fraud Investigation
The Schall Law Firm opened an investigation into whether Doximity issued false or misleading statements or failed to disclose material information leading up to the earnings report. As of June 2026, the matter remains in the investigation phase and no lawsuit has been filed.19The Schall Law Firm. Doximity, Inc. The stock was trading around $20.46 in June 2026, down more than 64% from a 52-week high of $76.51.20Simply Wall St. Doximity
If you held Doximity stock between June 24, 2021, and August 8, 2023, and want to participate in the $31 million settlement, the filing deadline is July 16, 2026. If you held DOCS shares around the May 2026 drop, the Schall Law Firm’s inquiry is an investigation, not a filed suit, and no class period has yet been defined.