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CDLX.US
id: 1473
Cardlytics (CDLX) Revenue Growth and Billing Misrepresentation Case
N.D. Georgia
Court1:25-cv-00279
Case number03/14/2024
Class period Start08/07/2024
Class period End03/25/2025
Lead Plaintiff motion deadline- $CDLX investors filed a lawsuit against Cardlytics, alleging the company misled them about its revenue growth, billing practices, and the impact of its Ads Decision Engine (ADE).
- On May 8, 2024, Cardlytics revealed weaker-than-expected financial results for Q1 2024. Following this announcement, $CDLX dropped 36.5%.
Case Details:
Between March 14, 2024, and August 7, 2024, Cardlytics assured investors of strong performance, driven by its Ads Decision Engine (ADE) and consumer engagement strategies. The company emphasized its ability to drive revenue and billings growth, projecting steady improvements in operations.
However, on May 8, 2024, Cardlytics reported that while Q1 2024 revenue increased by 8%, billings barely grew, rising just 0.2%. This discrepancy raised concerns about the effectiveness of its ADE and engagement initiatives. The company admitted that increased consumer incentives were driving costs higher, impacting growth projections.
On August 7, 2024, Cardlytics revealed Q2 2024 results showing a 9% year-over-year revenue decline, citing challenges with customer budgets and billing delivery. Alongside these results, the company announced the sudden resignation of CEO Karim Temsamani. These developments raised doubts about the company’s growth strategy and management.
Following this $CDLX dropped another 57.1%, closing at $2.96 the next day.
Based on these events, $CDLX investors filed a lawsuit against Cardlytics, claiming the company:
- It misled investors about its revenue growth and billing practices.
- It downplayed risks associated with increasing costs and challenges in delivering customer budgets.
Investors believe Cardlytics misrepresented its financial stability and operational capabilities.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08/07/2024
Filing date
01/22/2025
Lead Plaintiff Deadline
03/25/2025