Direct Digital (DRCT) Case Over The Cookie-Less Ads Issues

S.D. Texas

Court

4:24-cv-01940

Case number

04/17/2023

Class period Start

03/25/2024

Class period End

07/22/2024

Lead Plaintiff motion deadline

$DRCT stockholder filed a claim vs. Direct Digital for hiding the faster shift to "cookie-less" ads and lack of viable alternatives.
On March 27, 2024, after the financial results, $DRCT fell 39%, losing $36M+ of shareholder value.
Direct Digital investors can join this case and be notified about potential recovery.
Case Details:

On March 26, 2024, Direct Digital announced it missed Q4 2023 revenue estimates due to lower demand, delays in releasing Tier 1 publishers, and its move to a "cookie-less" advertising platform.

Moreover, Walker said cookies would phase out in Q1 2024, so they started shifting away from them for media transactions.

On this news, $DRCT fell by 39% on March 27, 2024.

On April 2, 2024, Direct Digital admitted a major issue with its financial reporting controls for December 31, 2023.

Due to this news, $DRCT dropped by 10%, on April 2, 2024.

Based on these events, $DRCT stockholder filed a claim against Direct Digital and its leaders, accusing them of the following:
The company's shift to "cookie-less" advertising was sped up, impacting 2024 revenue.
Alternatives to third-party cookies, like AI and machine learning, weren't seen as viable.
Considering all the representations, investors suspect Direct Digital hid the faster shift to "cookie-less" ads and lack of viable alternatives.

Case Status

Lead Plaintiff Submission

Alleged Offence

Mismanagement,

Misleading Statements

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

03/27/2024

Filing date

05/23/2024

Lead Plaintiff Deadline

07/22/2024

Judge

Kenneth M. Hoyt

Direct Digital (DRCT) Case Over The Cookie-Less Ads Issues

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