The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Direct Digital Holdings, Inc. (DRCT)

The Law Offices of Frank R. Cruz reminds investors of the upcoming July 22, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Direct Digital Holdings, Inc. (“Direct Digital” or the “Company”) (NASDAQ: DRCT) common stock between April 17, 2023 and March 25, 2024, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On March 26, 2024, Direct Digital released its fourth quarter and full year 2023 financial results, missing revenue growth estimates due to “efforts . . . to accelerate the transition towards a cookie-less advertising platform.”

On this news, Direct Digital’s stock price fell $10.47, or 39.5%, to close at $16.04 per share on March 27, 2024, thereby injuring investors.

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, or 10.4%, to close at $12.82 per share on April 2, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired Direct Digital common stock during the Class Period, you may move the Court no later than July 22, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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