SAN DIEGO, Feb. 13, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired Cardlytics, Inc. (NASDAQ: CDLX) (“Cardlytics” or the “Company”) securities between March 14, 2024 and August 7, 2024 (the “Class Period”), charging the Company and certain current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).
Cardlytics investors have until March 25, 2025 to seek appointment as lead plaintiff of the Cardlytics class action lawsuit.
If you purchased or acquired Cardlytics securities between March 14, 2024 and August 7, 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/cardlytics/.
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
Cardlytics operates a proprietary advertising platform in the United States and the United Kingdom that analyzes anonymized purchase data to help marketers reach potential purchasers. Using Cardlytics’ Ads Decision Engine (“ADE”) to identify and target consumers with relevant ads, the Company incentivizes consumers to make purchases from a marketer during specific periods. The Company funds these consumer incentives using a portion of the fees collected from marketers.
According to Cardlytics, “billings is an important indicator for the current health of the business because it directly represents [its] ability to bill customers for [its services] before any Consumer Incentives are paid.”
The Cardlytics lawsuit alleges that Defendants issued positive statements about the Company’s business, operations, and prospects that were materially misleading and/or lacked a reasonable basis during the Class Period. Specifically, Defendants failed to disclose to investors: (1) Cardlytics’ increase in consumer engagement also increased the consumer incentives provided; (2) Cardlytics’ billings could not increase proportionately with the higher consumer engagement; (3) that, as a result, Cardlytics faced an increased risk of its revenue growth slowing or declining; and (4) Cardlytics’ changes to ADE that caused an increase in consumer engagement also led to the “under-delivery” of budgets and customers billing estimates.
The truth began to emerge on May 8, 2024, when the Company announced that its first quarter 2024 revenue increased only 8% despite a 12% increase in billings. The Company cited a 20.2% increase in Consumer Incentives payments as the cause of the lackluster increase in revenue.
On this news, the price of Cardlytics stock fell by $5.33, or 36.5%, to close at $9.27 per share on May 9, 2024.
Defendants, however, continued to issue materially misleading statements during the Class Period. Specifically, Defendants touted the “product changes we’re making on ADE, better targeting and optimization of our ranking capabilities . . . This is really driving higher engagement.”
The truth was fully revealed on August 7, 2024, when Cardlytics announced its second quarter 2024 financial results, including a 9% year-over-year decrease in revenue. In an earnings call, Defendants admitted that “[r]evenue decreased due to a combination of lower-than-expected billings, largely due to under-delivery of budgets we have secured, and higher-than-expected consumer incentive payments.”
On this news, the price of Cardlytics stock fell by $3.94, or 57.1%, to close at $2.96 per share on August 8, 2024.
About DiCello Levitt
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