A securities class action has been filed in the USDC — S.D.N.Y. against Zeta Global Holdings Corp. (ZETA) (“Zeta” or the “Company”), on behalf of all those that purchased or otherwise acquired Zeta securities between February 27, 2024 and November 13, 2024, both dates inclusive (the “Class Period”).
Zeta is a marketing technology company. Zeta operates a cloud-based platform for marketers to identify and target potential consumers across a wide range of digital channels. The Company purports to “offer one of the largest proprietary data sets in the U.S.” composed of “an amalgamation of [] private proprietary data, publicly available data and data provided by [a] partner ecosystem.” As of December 31, 2023, the Company’s data set allegedly “contains more than 240 million opted-in individuals in the U.S. and more than 535 million opted-in individuals globally with an average of more than 2,500 attributes per individual, which may be demographic, behavioral, psychographic, transactional, or indicative of preference.”
The claim arises on November 13, 2024, at approximately 1:00 p.m. Eastern Standard Time, when market research group Culper Research published a report entitled “Zeta Global Holdings Corp (ZETA): Shams, Scams, and Spam.”
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) that Zeta used two-way contracts to artificially inflate financial results;
(2) that Zeta engaged in round trip transactions to artificially inflate financial results;
(3) that Zeta utilized predatory consent farms to collect user data;
(4) that these consent farms have driven almost the entirety of Zeta’s growth; and
(5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
On this news, the Company’s stock price fell $10.46, or 37.07%, to close at $17.76 per share on November 13, 2024, on unusually heavy trading volume.
If you purchased Zeta 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.”
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