Direct Digital Holdings, Inc.

Registration Deadline:

07/22/2024

A securities class action has been filed in the USDC S.D.TX. against Direct Digital Holdings, Inc. (DRCT) (“Direct Digital” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Direct Digital securities between April 17, 2023 and March 25, 2024, both dates inclusive (the “Class Period”).

 

Direct Digital is an end-to-end, full-service programmatic advertising platform that provides advertising technology, data-driven campaign optimization, and other solutions to markets on both the buy- and sell-side of the digital advertising ecosystem.

 

The complaint alleges that throughout the Class Period, Defendants made false and misleading statements, as well as failed to disclose material facts, including that:

 

(1) the Company’s transition toward a “cookie-less” advertising environment was accelerated and would impact revenue in 2024;

(2) the Company’s alternatives to third-party cookies, including planned investments in AI and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies;

(3) the Company did not have adequate solutions to address the impending phase out of third-party cookies by Google; and

(4) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the effectiveness of Direct Digital’s platform and related financial results, growth, and prospects. When the truth emerged, Direct Digital shares fell significantly, damaging investors according to the allegations of the suit.

 

If you purchased Direct Digital securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

 

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.

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