#USA #New York #Faruqi & Faruqi #DoubleVerify #NYSE DV

Ongoing Investigations by Faruqi & Faruqi LLP

In a recent announcement, Faruqi & Faruqi LLP, a prominent national securities law firm, is actively conducting an investigation into allegations against DoubleVerify Holdings, Inc. (NYSE: DV). The firm is reaching out to investors who have suffered losses in DoubleVerify during the period from November 10, 2023, to February 27, 2025, urging them to explore their legal options.

Faruqi & Faruqi LLP is encouraging affected investors to contact their partner, James (Josh) Wilson, via direct phone numbers to discuss potential claims. The firm emphasizes the impending deadline of July 21, 2025, for individuals interested in stepping forward as lead plaintiffs in the ongoing federal securities class action against DoubleVerify.

Background of Allegations

The complaint against DoubleVerify’s executives alleges multiple violations of federal securities laws. Key issues raised include misleading financial statements, failure to disclose critical business challenges, and the company's questionable billing practices. Specifically, the allegations suggest:

• - DoubleVerify's customers were increasingly shifting their advertising budgets from open exchanges to closed platforms, which posed operational challenges for the company.
• - There were concerns regarding the substantial operational costs associated with the company's high-margin advertising services, particularly in relation to closed platforms.
• - The ability of DoubleVerify to further monetize its services was described as limited, particularly due to the lag in adapting its technology to meet market demands. This has raised questions about the company’s competitive positioning against rivals who are better equipped to integrate artificial intelligence into their ad verification services.
• - There were also serious accusations regarding their billing practices, which suggested that customers were overcharged for ad impressions attributed to bots that are easily identifiable.

This information has been painted in a severe light, suggesting that statements by the company regarding its financial health and operational capabilities were overly optimistic and lacked transparency. As a result, many investors suffered significant financial losses.

Timeline of Events

The allegations surrounding DoubleVerify became more pronounced following a series of disclosures made in early 2025. In February, DoubleVerify revealed disappointing quarterly earnings, which coincided with a substantial drop in stock price – a reported decrease of 36%. This shock came amidst news that a notable client had halted services provided by DoubleVerify, leading to further scrutiny by investors.

In the subsequent month, market research firm Adalytics Research published findings that called into question the effectiveness of DoubleVerify's ad verification services. This report indicated flaws in their functionality and highlighted possible fraud in the ad impressions billed.

Next Steps for Investors

For investors who align with the concerns raised, there are avenues available to participate in the ongoing litigation. Members of the affected class can either file to serve as lead plaintiffs or opt to remain involved without taking the lead role. It’s essential to note that the decision to seek a lead role does not impact the rights of other class members to share in any eventual recovery from legal proceedings.

Faruqi & Faruqi also extends a call for witnesses or individuals with pertinent information regarding DoubleVerify's operations to come forward, including former employees and shareholders. The firm seeks a comprehensive understanding of the issues surrounding DoubleVerify and aims to pursue any necessary legal actions thoroughly.

For anyone impacted by these developments or who wishes to learn more about the ongoing investigation, they can visit Faruqi & Faruqi’s official website or contact Mr. Wilson directly for personalized guidance and next steps.

This case highlights the critical importance of due diligence in investment decisions and serves as a significant reminder of the impactful role that legal representation can have for investors navigating potentially hostile situations in the securities market.