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DRCT.US
id: 1232
Direct Digital (DRCT) Case Over The Cookie-Less Ads Issues
S.D. Texas
Court4:24-cv-01940
Case number04/17/2023
Class period Start03/25/2024
Class period End07/22/2024
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