NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Zeta Global Holdings Corp. (“Zeta” or the “Company”) (NYSE:ZETA) securities during the period of February 27, 2024, to November 13, 2024, inclusive (“the Class Period”). Investors have until January 21, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
The lawsuit alleges that on November 13, 2024, Culper Research published a report alleging that the integrity of Zeta’s data collection and reported financials is severely undermined by two factors. First, the report alleged that Zeta has formed two-way contracts with third party consent farms wherein Zeta simultaneously acts as both a supplier and a buyer of consumer data, allowing the Company to flatter reported revenue growth and indicating possible round-tripping of revenue. Second, the report alleged that Zeta collects much of its customer data from a network of sham websites that deceive millions of consumers each month into handing their private data over to Zeta under false pretenses. For example, the report alleged that Zeta and its subsidiaries operate a number of fake job boards which are designed to trick individuals into submitting personal data under the pretense of job applications. The report further alleged that the Company’s most valuable data comes from these predatory websites, dubbed consent farms, which are responsible for almost the entirety of the Company’s growth. On this news, the price of Zeta shares declined by $10.46 per share, or approximately 37%, from $28.22 per share on November 12, 2024, to close at $17.76 on November 13, 2024.
The complaint alleges, 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: (1) that Zeta used two-way contracts to artificially inflate financial results; (2) that Zeta engaged in round trip transactions to artificially inflate financial results; (3) that Zeta utilized predatory consent farms to collect user data; and (4) that these consent farms have driven almost the entirety of Zetas growth.
If you purchased or otherwise acquired Zeta securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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