Investigation announced for Long-Term Investors in shares of Direct Digital Holdings, Inc. (NASDAQ: DRCT)

An investigation was announced concerning potential breaches of fiduciary duties by certain directors and officers of Direct Digital Holdings, Inc.

Investors who are current long term investors in Direct Digital Holdings, Inc. (NASDAQ: DRCT) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm for current long term investors in NASDAQ: DRCT stocks follows a lawsuit filed against Direct Digital Holdings, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ: DRCT stocks, concerns whether certain Direct Digital Holdings, Inc. directors are liable in connection with the allegations made in that lawsuit.

According to that complaint filed in the U.S. District Court for the Southern District of Texas U.S. the plaintiff alleges that, 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.