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DRCT.US
id: 1232

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

S.D. Texas
Court
4:24-cv-01940
Case number
17 Apr 2023
Class period Start
25 Mar 2024
Class period End
22 Jul 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
27 March 2024
Filing date
23 May 2024
Lead Plaintiff Deadline
22 July 2024
Collecting participants…