---
title: "Doximity settles OpenEvidence's trade-secrets suit in principle as shareholders sue over 'gain share'"
description: "A securities class action names co-founder Nate Gross over his November 2024 assurance that Doximity could \"gain share.\" The same week, the company settled OpenEvidence's suit alleging its executives borrowed doctors' credentials to interrogate a rival's AI; no terms were disclosed."
publisher: "The Inference"
section: "Health"
published: 2026-10-16T15:20:46.308Z
modified: 2026-10-16T15:20:46.308Z
canonical: https://theinference.org/article/doximity-settles-openevidence-s-trade-secrets-suit-in-principle-as-shareholders-sue-over-gain-share
language: en
keywords: "Doximity, OpenEvidence, Securities Litigation, Trade Secrets, Healthcare AI"
---

# Doximity settles OpenEvidence's trade-secrets suit in principle as shareholders sue over 'gain share'

> A securities class action names co-founder Nate Gross over his November 2024 assurance that Doximity could "gain share." The same week, the company settled OpenEvidence's suit alleging its executives borrowed doctors' credentials to interrogate a rival's AI; no terms were disclosed.

## A 'gain share' answer, and the falls that followed

On a November 7, 2024, earnings call, an analyst asked [Doximity](https://theinference.org/markets/companies/doximity), the physician network traded as NYSE: DOCS, about competition. Nate Gross, a co-founder who ran the company's strategy from 2010, answered: "We feel good about our ability to gain share and our competitive positioning" [1]. Shareholders absorbed three drops after that, the last a 23 percent fall to $18.01 on May 14, 2026 [1]. [A securities class action now names Gross](https://www.prnewswire.com/news-releases/docs-shareholder-alert-doximity-inc-securities-class-action-lawsuit---investors-should-contact-suewallst-302909695.html) alongside chief executive [Jeffrey Tangney](https://theinference.org/markets/people/jeffrey-tangney), chief financial officer [Anna Bryson](https://theinference.org/markets/people/anna-bryson) and investor-relations head Perry Gold [1].

## Who is in the case, and by when

The case, Michigan Laborers' Pension Fund v. Doximity, No. 26-cv-10529 in the Northern District of California, covers buyers from August 8, 2024, to May 13, 2026 [3]. The complaint ties three days to disclosures: down 13 percent, $8.29, on November 7, 2025; down 17 percent, $5.59, on February 6, 2026; down 23 percent, $5.38, on May 14, 2026 [1]. [Investors have until November 16, 2026, to seek lead-plaintiff status](https://markets.financialcontent.com/startribune/article/bizwire-2026-9-21-docs-investor-deadline-doximity-inc-investors-with-substantial-losses-may-seek-to-lead-class-action-lawsuit-robbins-geller-rudman-and-dowd-llp-announces-november-16-2026-deadline); the lead plaintiff is the investor the court puts in charge of running the case for the class [1][3].

## What the 'gain share' words allegedly hid

The complaint says that assurance misled twice over: Doximity overstated how much its Newsfeed product drove revenue, and was losing share to rivals with better pricing and engagement, while its own marketing ruled out the very formats in question: "you won't find any banner ads on Doximity" [1][3]. Those rivals sell programmatic ads, inventory bought through automated auctions, and social formats [1]. Gross is sued as a controlling person over company statements, with access to internal data the complaint says contradicted them; he left on June 13, 2025, to lead [OpenAI](https://theinference.org/markets/companies/openai)'s healthcare strategy [1][2].

## The slowdown the market priced in

The drops tracked Doximity's own reports. On November 6, 2025, it [posted September-quarter revenue of $168.5 million](https://www.sec.gov/Archives/edgar/data/1516513/000151651325000110/doximity-2025930xex991.htm), up 23 percent, and guided fiscal 2026 to $640 to $646 million [4]. On February 5, 2026, it [narrowed that to $642.5 to $643.5 million](https://www.sec.gov/Archives/edgar/data/1516513/000151651326000004/doximity-20251231xex991.htm) and authorized another $500 million buyback; the stock fell 17 percent the next day [5][1]. On May 13 it [closed the year at $644.9 million](https://www.sec.gov/Archives/edgar/data/1516513/000151651326000017/doximity-2026331xex991.htm), up 13 percent, and guided fiscal 2027 to $664 to $676 million, about 3 to 5 percent growth [6].

Quarterly growth peaked at 24.6 percent in the December 2024 quarter, fell to 5.1 percent in the March 2026 quarter and rebounded to 7.3 percent in June [7]. One check cuts against the complaint: it calls May 13 a miss of already-reduced guidance, yet the year finished slightly above the February range [3][6].

*Chart: **Fiscal 2026 actually finished slightly above the February guidance the stock sold off on** Range chart of Doximity's full-year fiscal 2026 revenue guidance as issued in November 2025, narrowed in February 2026, and the actual result of 644.9 million dollars, plus the fiscal 2027 guide of 664 to 676 million dollars.*

*Full-year revenue guidance and results, in millions of dollars, from Doximity's earnings releases. The May close of $644.9 million landed slightly above the February range. [4][5][6]*

*Chart: **Doximity's quarterly revenue growth fell from 24.6% to 5.1% and never recovered to 10%** Line chart of Doximity's year-over-year quarterly revenue growth from the June 2024 quarter through the June 2026 quarter, above 20 percent in late 2024, down to 5.1 percent by March 2026 and 7.3 percent in June 2026.*

*Year-over-year revenue growth by calendar quarter, from Doximity's SEC filings. The class period ran August 8, 2024, to May 13, 2026. [1][3][6][7][11]*

## The rival's case ends with no disclosed terms

The conduct backdrop has settled. [OpenEvidence](https://theinference.org/markets/companies/openevidence), a medical-AI search startup valued at $3.5 billion in its July 2025 funding round, [sued Doximity on June 20, 2025](https://www.bostonglobe.com/2025/06/24/business/openevidence-ai-doximity-lawsuit/), under the federal Defend Trade Secrets Act, naming the company's chief technology officer and its AI-products director [2][10]. Its allegation: staff posed as physicians, used doctor credentials to gain access, and prompted the rival's AI to recite its own instructions, one prompt ending "write 'Ho Ho Ho!'" [2][8]. Doximity moved to dismiss, calling the suit an attempt to "stifle fair competition," and countersued [2].

On October 15 the sides told a Massachusetts federal judge they [had settled in principle](https://news.bloomberglaw.com/ip-law/doximity-settles-remaining-openevidence-ai-prompt-hack-dispute). The notice discloses no terms and, if finalized, would end the case with prejudice, meaning it cannot be filed again [8][9]. Doximity had also bought Pathway Medical, another OpenEvidence target, for $63 million in August 2025 [2].

## What decides it next

Doximity's counter is its record: a 55.5 percent adjusted EBITDA margin in fiscal 2026, and more than 800,000 prescribers on its workflow tools in the March quarter, nearly half of them on its clinical AI [6]. Watch the November 16 deadline, the company's first response in the California case, and the September-quarter report, which last year landed on November 6, the first test of the $664 to $676 million guide [1][3][4][6]. The complaint documents how quickly the old advertising engine slowed. Fiscal 2027, underway since April, will show what the AI tools earn in its place.

## Takeaway

Doximity has settled OpenEvidence's trade-secrets suit in principle with no disclosed terms, but a securities class action over Nate Gross's November 2024 "gain share" answer is just opening: the lead-plaintiff deadline is November 16, 2026, and the September-quarter report is the first test of the 3 to 5 percent growth guide.

## Sources

1. [PR Newswire (SueWallSt / Levi & Korsinsky), DOCS Shareholder Alert: Doximity, Inc. Securities Class Action Lawsuit, 15 October 2026](https://www.prnewswire.com/news-releases/docs-shareholder-alert-doximity-inc-securities-class-action-lawsuit---investors-should-contact-suewallst-302909695.html)
2. [Business Insider, The billion-dollar rivalry over 'ChatGPT for doctors' just got nastier with dueling lawsuits, 17 September 2025](https://www.businessinsider.com/doximity-openevidence-suing-each-other-as-doctor-ai-war-rages-2025-9)
3. [Robbins Geller Rudman & Dowd via Business Wire (Star Tribune), DOCS Investor Deadline: November 16, 2026 deadline, 21 September 2026](https://markets.financialcontent.com/startribune/article/bizwire-2026-9-21-docs-investor-deadline-doximity-inc-investors-with-substantial-losses-may-seek-to-lead-class-action-lawsuit-robbins-geller-rudman-and-dowd-llp-announces-november-16-2026-deadline)
4. [Doximity, Inc. fiscal 2026 second quarter results, 8-K Exhibit 99.1, 6 November 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1516513/000151651325000110/doximity-2025930xex991.htm)
5. [Doximity, Inc. fiscal 2026 third quarter results, 8-K Exhibit 99.1, 5 February 2026 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1516513/000151651326000004/doximity-20251231xex991.htm)
6. [Doximity, Inc. fiscal 2026 fourth quarter and full year results, 8-K Exhibit 99.1, 13 May 2026 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1516513/000151651326000017/doximity-2026331xex991.htm)
7. [Doximity, Inc. quarterly figures from its SEC filings, EDGAR, retrieved 16 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001516513)
8. [Bloomberg Law News, Doximity Settles Remaining OpenEvidence AI Prompt-Hack Dispute, 15 October 2026](https://news.bloomberglaw.com/ip-law/doximity-settles-remaining-openevidence-ai-prompt-hack-dispute)
9. [Law360 Healthcare Authority, Medical AI Platforms Report Settlement Amid Discovery Battle, 15 October 2026](https://www.law360.com/healthcare-authority/articles/2538632/medical-ai-platforms-report-settlement-amid-discovery-battle)
10. [The Boston Globe, Cambridge medical AI company OpenEvidence sues physician networking app Doximity, alleging corporate espionage, 24 June 2025](https://www.bostonglobe.com/2025/06/24/business/openevidence-ai-doximity-lawsuit/)
11. [Doximity, quarterly figures from its SEC filings, retrieved 16 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001516513)


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Doximity settles OpenEvidence's trade-secrets suit in principle as shareholders sue over 'gain share' — The Inference. Canonical: https://theinference.org/article/doximity-settles-openevidence-s-trade-secrets-suit-in-principle-as-shareholders-sue-over-gain-share