New York, New York–(Newsfile Corp. – June 28, 2024) – Pomerantz LLP announces that a class action lawsuit has been filed against Direct Digital Holdings, Inc. (Direct Digital or the Company) (NASDAQ: DRCT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Direct Digital and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until July 22, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Direct Digital securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
On March 26, 2024, Direct Digital announced that it missed revenue estimates for the fourth quarter of 2023, citing lower-than-anticipated demand, a delay in the release of Tier 1 publishers from beta testing, and proactive efforts by Direct Digital to accelerate its transition towards a cookie-less advertising platform. Chief Executive Officer Mark Walker also revealed that in the fourth quarter of 2023, it became clearer that cookie depreciation would begin in the first quarter of 2024 and that [a]s such, our team proactively began our transition off of cookies for media transactions.
On this news, Direct Digital’s stock price fell $10.47 per share, or approximately 39%, to close at $16.04 per share on March 27, 2024.
Then, on April 2, 2024, Direct Digital disclosed that a material weakness had been identified in [its] review of internal control over financial reporting as of December 31, 2023.
On this news, Direct Digital’s stock price fell $1.31 per share, or 10.4%, to close at $12.82 per share on April 2, 2024.
