LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Oddity Tech Ltd. (“Oddity” or the “Company”) (NASDAQ: ODD) securities between July 19, 2023 and May 20, 2024, inclusive (the “Class Period”). Oddity investors have until September 17, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On May 21, 2024, NINGI Research published a report alleging, among other things, that Oddity “completely misled investors about every critical aspect of its business,” specifically regarding its AI, stating that former employees disclosed that the Company’s AI is nothing but a questionnaire”; that Oddity’s lauded “repeat purchase rates” are attributable to “customers unknowingly enter[ing] into non-cancelable plans” that allow the Company “to recognize repeat purchases in the following quarters even though the customers don’t want the product.” Additionally, the report claimed that it had “found hundreds of undisclosed lawsuits filed against ODDITY and its subsidiaries in the US and Israel, frequently alleging unpaid bills and violations of consumer protection laws,” including multiple class action lawsuits filed within the past several years.
On this news, Oddity’s stock price fell $3.02, or 7.4%, to close at $37.97 per share on May 21, 2024, thereby injuring investors.
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) Oddity overstated its AI technology and capabilities, and/or the extent to which this technology drove the Company’s sales; (2) Oddity’s repeat purchase rates and revenues were, at least in part, derived from unsustainable and deceptive sales and advertising practices; (3) Oddity downplayed the true scope and severity of ongoing civil litigation against the Company and/or its subsidiaries; 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 Oddity securities during the Class Period, you may move the Court no later than September 17, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you purchased Oddity securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, 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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