SAN DIEGO, Dec. 10, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired Zeta Global Holdings Corp. (NYSE: ZETA) (“Zeta” or the “Company”) securities between February 27, 2024 and November 13, 2024, inclusive (the “Class Period”), charging the Company and certain of its current senior executives and other personnel with violations of the federal securities laws (collectively, “Defendants”).
Zeta investors have until January 21, 2025 to seek appointment as lead plaintiff of the Zeta class action lawsuit.
If you purchased or acquired Zeta securities between February 27, 2024 and November 13, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/zeta/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Zeta is a marketing technology company that operates a cloud-based platform for marketers to identify and target potential consumers across a wide range of digital channels.
The Zeta lawsuit alleges that Defendants made false and misleading statements and/or concealed material adverse facts concerning Zeta’s business, operations, and prospects during the Class Period. Specifically, Defendants concealed to investors that: (i) Zeta used two-way contracts to artificially inflate its financial results; (ii) Zeta engaged in round trip transactions to artificially inflate financial results; (iii) Zeta operated predatory consent farms, deceptive websites operated for the sole purpose of obtaining individuals’ personal data; and (iv) Zeta’s growth has been materially driven by its operation of these consent farms.
The truth began to emerge on November 13, 2024, when securities analyst Culper Research published a critical research report titled “Zeta Global Holdings Corp (ZETA): Shams, Scam, and Spam” (the Report”), alleging, among other things, that the “integrity of the Company’s data collection and reported financials” is severely undermined by two factors. First, the Report claims “Zeta has formed ‘two-way’ contracts with third party consent farms wherein the Company simultaneously acts as both a supplier and a buyer of consumer data, not only allowing the Company to flatter reported revenue growth, but raising round tripping concerns.” Second, the Report alleges “Zeta has quietly spun up its own network of consent farms i.e., sham websites that hoodwink millions of consumers each month into handing their data over to Zeta under false pretenses, baited by job applications, stimulus money, or other rewards that simply do not exist.”
On this news, the price of Zeta stock fell by $10.46 per share, or 37%, to close at $17.76 per share on November 13, 2024.
About DiCello Levitt
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