The law firm of Kirby McInerney LLP reminds investors 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 Digimarc Corporation (“Digimarc” or the “Company”) (NASDAQ: DMRC) securities during the period from May 2, 2024, through February 26, 2025 (“the Class Period”). Investors have until May 9, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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On February 26, 2025, after the market closed, Digimarc released its fourth quarter and full year 2024 financial results, revealing the Company’s quarterly subscription revenue decreased 10% to $5.0 million, compared to $5.6 million in the previous year, and annual recurring revenue had decreased to $20.0 million, compared to $22.23 million in the previous year. These declines “primarily reflect[ed] a $5.8 million decrease in ARR due to the expiration of a commercial contract in June 2024.” On this news, the price of Digimarc shares declined by $11.65, or approximately 43%, from $27.04 on February 26, 2025, to close at $15.39 on February 27, 2025.

The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) that a large commercial partner would not renew a large contract on the same terms; (2) that, as a result, Digimarc would renegotiate the large commercial contract; and (3) that, as a result of the foregoing, the Company’s subscription revenue and annual recurring revenue would be adversely affected.

If you purchased or otherwise acquired Digimarc 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 fill out the contact form below, to discuss your rights or interests with respect to these matters without any cost to you.

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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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