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INVESTOR ALERT: Shareholder Class Action Lawsuit Filed Against Integral Ad Science Holding Corp. (NASDAQ: IAS); DiCello Levitt LLP Encourages Investors with Losses to Discuss Their Options with Counsel

SAN DIEGO, Feb. 14, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired shares of Integral Ad Science Holding Corp. (NASDAQ: IAS) (“IAS” or the “Company”) common stock between March 2, 2023 and February 27, 2024 (the “Class Period”), charging the Company and certain current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).  

IAS investors have until March 31, 2025 to seek appointment as lead plaintiff of the Cardlytics class action lawsuit.

If you purchased or acquired IAS common stock between March 2, 2023 and February 27, 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/ias/.

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

IAS is a global software company specializing in digital advertising. The Company offers a suite of digital ad verification and optimization solutions to help advertisers and publishers “ensur[e] that every digital ad reaches real consumers in brand-appropriate environments, and has the opportunity to be seen by consumers.” IAS’s revenue is derived from three segments: (1) optimization, (2) measurement, and (3) publisher.

The IAS lawsuit alleges that Defendants issued materially false and misleading statements and failed to disclose materially adverse facts about the Company’s business and operations during the Class Period, including that: (i) IAS was facing increased competitive pricing pressure, forcing the Company to cut prices in response to weakening demand and slowing revenue growth; (ii) IAS could not sustain its pricing increases since its pricing function was no longer “favorable”; (iii) pricing was a determinative factor between IAS and its main competitor necessary to close major renewals and new deals; and (iv) the risks that competition “could result in increased pricing pressure” or “could put pressure” on IAS to change its prices had already manifested.

The truth began to emerge on August 3, 2023, when the Company announced that its second quarter 2023 optimization revenue increased by only 10%, reflecting a substantial decline in IAS’s year-over-year optimization revenue growth rate.   In a related earnings call, Defendants disclosed that its optimization revenue growth was “partially offset by slowed demand from tech/telco clients” but assured investors that IAS’s pricing leverage was strong despite a “slight decline” in the optimization segment.   On this news, the price of IAS stock fell by $3.66, or approximately 20%, to close at $15.17 per share on May 9, 2024.

Defendants, however, continued to tout IAS’s pricing leverage by stating “when we’re introducing new technology like TMQ, we’re able to drive a bit of a price increase.”

The truth was fully revealed on February 27, 2024, when IAS announced fourth quarter and full year ended December 31, 2023 financial results, reporting lackluster guidance for fiscal 2024.   In an earnings call, Defendants admitted that “[w]e are seeing more competitive pricing and measurement on a select group of large contract renewals in exchange for increased volume commitments and multi-year exclusive agreements.”

Market analysts were shocked. For example, Barclays reported that “[t]his was not expected by the investment community, and will raise fears about the competitive market.” Also, Raymond James stated that “IAS has been confident of their ability to defend pricing (noting that competitors’ pricing was typically not very divergent). As such, the desire to become more aggressive was surprising.”

On this news, the price of IAS stock fell by $7.09, or approximately 40%, to close at $10.01 per share on February 28, 2024.

About DiCello Levitt

At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.

DiCello Levitt has achieved top recognition as Plaintiffs Firm of the Year and Trial Innovation Firm of the Year by the National Law Journal, in addition to its top-tier Chambers and Benchmark ratings. The New York Law Journal also recently recognized DiCello Levitt as a Distinguished Leader in trial innovation. For more information about the Firm, including recent trial victories and case resolutions, please visit www.dicellolevitt.com.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Media Contact

Amy Coker
4747 Executive Drive, Suite 240
San Diego, CA 92121
619-963-2426
investors@dicellolevitt.com


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