(NewMediaWire) - November 29, 2024 - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Zeta Global Holdings Corp. (“Zeta” or the “Company”) (NYSE: ZETA) securities between February 27, 2024 and November 13, 2024 (the “Class Period”).If you are an investor in Zeta and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
On November 13, 2024, Culper Research published a report alleging, among other things, that “Zeta has formed ‘two-way’ contracts with third party consent farms wherein the Company simultaneously acts as both a supplier and a buyer of consumer data, not only allowing the Company to flatter reported revenue growth, but raising round tripping concerns.” The report further alleges that the “Zeta has quietly spun up its own network of consent farms i.e., sham websites that hoodwink millions of consumers each month into handing their data over to Zeta under false pretenses, baited by job applications, stimulus money, or other rewards that simply do not exist” and that these consent farms have “driven almost the entirety of Zeta’s growth over the past 2+ years and now represent 56% of reported Adj. EBITDA.” Following the publication of the Culper Research report, Zeta has responded to the allegations by stating, among other things, that “the Company believes this report is riddled with misrepresentations, speculative conjecture, and categorically false statements.”
On November 13, 2024, the price of Zeta’s shares fell $10.46 per share, more than 37%, to close at $17.76 per share.
A complaint has been filed alleging, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that Defendants (i) used two-way contracts to artificially inflate financial results; (ii) engaged in round trip transactions to artificially inflate financial results; (iii) utilized predatory consent farms to collect user data; and (iv) these consent farms have driven almost the entirety of Zeta’s growth.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
