Over GoDaddy promo gone wrong — Lawsuit filed
Securities lawsuit alleges .com promo conflicted with the firm’s public statements regarding targeting high-spending clients.
A GoDaddy (NYSE: GDDY) stockholder has filed a securities lawsuit against the firm, alleging the firm misled investors regarding its client buyout strategy while running a heavily discounted .com promotion.
Plaintiff Raymond Johnson, with the assistance of law firm Kaplan Fox & Kilsheimer LLP, filed the suit (pdf).
The lawsuit is seeking class action status for investors who bought GoDaddy shares between September 3, 2025, and February 24, 2026.
The crux of the case is GoDaddy’s decision to offer a $4.99 .com registration promotion with a one-year term.
Demand was higher than expected, which hurt bookings and near-term revenue results.
The complaint alleges that GoDaddy did not tell investors regarding the promotion, even as executives repeatedly emphasized the firm’s strategy of attracting “high-intent” clients who spend $500 or more.
GoDaddy shares slid 14% to $79.12 the day following GoDaddy disclosed the promotion’s financial impact in February. (Shares closed Friday at $97.07.)
