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Ongoing Investigation into Cardlytics by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a prominent national securities law firm, has initiated an investigation into possible claims on behalf of investors who have suffered losses due to Cardlytics, Inc. This inquiry is primarily focused on individuals who purchased or acquired securities in Cardlytics between March 14, 2024, and August 7, 2024. If you fall into this category, the firm emphasizes the importance of contacting them to discuss your legal rights and options diligently.

The investigation comes in the wake of troubling reports regarding the company's financial performance and its compliance with federal securities laws. Allegations suggest that Cardlytics and its executives made misleading statements and failed to disclose critical information that could have substantially impacted investors' decisions. Notably, the claims allege that the company misrepresented its ability to balance increasing consumer engagement with its financial growth. As a result, there were significant discrepancies between expectations and reality concerning the company’s revenue stream.

A critical moment for Cardlytics arrived on May 8, 2024, when the company announced that its revenue for the first quarter of 2024 saw only an 8% increase compared to the prior year. This figure was notably disheartening given the 12% rise in billings, a disparity attributed to a 20.2% surge in consumer incentives. Following this announcement, Cardlytics experienced a dramatic decline in their stock price, plummeting by $5.33, representing a staggering 36.5% drop, which saw shares close at $9.27.

The situation worsened when the company revealed its second-quarter financial results on August 7, 2024. The announcement disclosed a 9% decrease in revenue year-over-year, translating to total earnings of $69.6 million, coupled with a 3% decline in adjusted contributions. This exacerbated the panic among investors and led to an overnight decrease in stock price by $3.94, closing the session at just $2.96 per share. These revelations also included a crucial change in leadership, with then-CEO Karim Temsamani stepping down from his role and the Board of Directors, adding to the turmoil surrounding the firm.

Faruqi & Faruqi's investigation emphasizes that potential lead plaintiffs—those with the most significant financial stake in the class action—can arise from this tumultuous time. Investors can apply to serve as lead plaintiffs, but they may also remain as absent class members. Interestingly, their legal rights regarding any possible recovery remain intact regardless of whether they choose to take an active role in the proceedings.

The investigation is not merely a routine procedure, as Faruqi & Faruqi LLP also reaches out to anyone possessing relevant information about Cardlytics, encouraging whistleblowers, prior employees, and shareholders to come forward.

For individuals looking to understand their options further and to join the legal movement against Cardlytics, they can visit the firm’s dedicated webpage or contact attorney Josh Wilson directly by phone. The firm operates with a commitment to privacy, ensuring all communications are confidential.

Faruqi & Faruqi have been significant players in the securities law field since their establishment in 1995, successfully recovering hundreds of millions for investors. Their goal is to protect the rights and financial interests of investors and uphold integrity in financial markets. As this situation unfolds, investors will need to remain vigilant and proactive in securing their rights amidst the ongoing complexities surrounding Cardlytics.