A securities class action has been filed in the USDC – S.D.N.Y. against DoubleVerify Holdings, Inc. (DV) (“DoubleVerify” “DV” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired DoubleVerify common between November 10, 2023, and February 27, 2025, both dates inclusive (the “Class Period”).
DoubleVerify provides data analytics services that help brands, agencies, and publishers verify that their digital advertising investments are delivered as intended.
The Company generates revenue primarily through two categories of services: (1) Measurement Services; and (2) Activation Services. Measurement Services provide advertisers with analytics to measure the effectiveness of their digital advertisements, including whether ads are delivered in brand-safe environments, are fully viewable, and reach real people in the intended geography. The Company generates Measurement Services revenue from fees earned on a high volume of low-value transactions, which are highly automated and based on contractual terms with advertisers.
The complaint alleges that, throughout the Class Period, Defendants misled investors by failing to disclose that:
(1) DV’s customers were shifting their ad spending from open exchanges to closed platforms, where the Company’s technological capabilities were limited and competed directly with native tools provided by platforms like Meta Platforms and Amazon;
(2) DV’s ability to monetize on its Activation Services was limited because the development of its technology for closed platforms was significantly more expensive and time-consuming than disclosed to investors;
(3) DV’s Activation Services in connection with certain closed platforms would take several years to monetize;
(4) DV’s competitors were better positioned to incorporate AI into their offerings on closed platforms, which impaired the Company’s ability to compete effectively and adversely impacted the Company’s profits;
(5) DV’s systematically overbilled its customers for ad impressions served to declared bots operating out of known data center server farms;
(6) DV’s risk disclosures were materially false and misleading because they characterized adverse facts that had already materialized as mere possibilities; and
(7) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading or lacked a reasonable basis, thereby harming investors.
DoubleVerify’s stock price fell approximately 36 percent to close at $13.90 on February 28, 2025.
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