BOSTON, May 23, 2024 (GLOBE NEWSWIRE) -- On behalf of an individual investor, Block & Leviton LLP filed a class action lawsuit today against Direct Digital Holdings, along with certain individuals, alleging that they violated federal securities laws by issuing false and misleading statements concerning the company’s business, operations, and prospects. A copy of the Complaint is available on Block & Leviton’s website.

The suit alleges that throughout the Class Period, Defendants made false and misleading statements, as well as failed to disclose material facts, including that: (1) the Company’s transition toward a “cookie-less” advertising environment was accelerated and would impact revenue in 2024; (2) 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; (3) the Company did not have adequate solutions to address the impending phase out of third-party cookies by Google; and (4) 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.

The suit was brought in the Southern District of Texas, and filed by Block & Leviton LLP. The case is captioned Monsky v. Direct Digital Holdings, Inc., No. 4:24-cv-01940 (S.D. Tex.). The suit is brought on behalf of all those who purchased or otherwise acquired Direct Digital common stock between April 17, 2023 and March 25, 2024.

If you are an investor who purchased or otherwise acquired Direct Digital stock during the Class Period, you are a member of this proposed Class, and may be able to seek appointment as a lead plaintiff. This is a court-appointed representative of the class. To do so, you must comply with the relevant provisions of the Private Securities Litigation Reform Act, 15 U.S.C. 78u-4. If you wish to serve as lead plaintiff, you must move the Court by no later than July 22, 2024, the deadline established by this notice. You may contact Block & Leviton to learn more about serving as a lead plaintiff.

You do not need to seek to become a lead plaintiff to share in any possible recovery. You may retain counsel of your choice to represent you in this action.

You can learn more about the suit at Block & Leviton’s case webpage, by calling (888) 256-2510, or by emailing shareholders@blockleviton.com.

CONTACT:

Block & Leviton LLP
260 Franklin Street, Suite 1860
Boston, MA 02110
(888) 256-2510
shareholders@blockleviton.com
www.blockleviton.com