Lawsuit filed for Investors who lost money with shares of Direct Digital Holdings, Inc. (NASDAQ: DRCT)

An investor, who purchased shares of Direct Digital Holdings, Inc. (NASDAQ: DRCT), filed a lawsuit over alleged violations of Federal Securities Laws by Direct Digital Holdings, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Direct Digital Holdings, Inc. (NASDAQ: DRCT) have certain options and for certain investors are short and strict deadlines running. Deadline: July 22, 2024. NASDAQ: DRCT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Houston, TX based Direct Digital Holdings, Inc. operates as an end-to-end full-service programmatic advertising platform. Direct Digital Holdings, Inc. reported that its annual Total Revenue rose from $38.13 million in 2021 to $89.36 million in 2022 and that its Net Loss of $1.5 million in 2021 turned into a Net Income of $4.16 million in 2022.
On March 26, 2024, Direct Digital Holdings, Inc. reported its fourth-quarter financial results for the period ending December 31, 2023, The Company reported revenue of $41 million missing consensus estimates by $24.95 million. EPS for the quarter was ($0.08) and consensus estimates was for earnings of $.26.

According to the complaint the plaintiff alleges on behalf of purchasers of Direct Digital Holdings, Inc. (NASDAQ: DRCT) common shares between April 17, 2023 and March 25, 2024, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 17, 2023 and March 25, 2024, the Defendants made false and misleading statements, as well as failed to disclose material facts, including that the Company's transition toward a "cookie-less" advertising environment was accelerated and would impact revenue in 2024, that the Company's alternatives to third-party cookies, including planned investments in AI and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies, that the Company did not have adequate solutions to address the impending phase out of third-party cookies by Google, and that based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the effectiveness of Direct Digital's platform and related financial results, growth, and prospects. When the truth emerged, Direct Digital shares fell significantly, damaging investors according to the allegations of the suit.

Those who purchased shares of Direct Digital Holdings, Inc. (NASDAQ: DRCT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.