#USA #New York #Class Action #Pomerantz Law #ODDITY Tech Ltd.

Class Action Against ODDITY Tech Ltd.

The Pomerantz Law Firm has officially filed a class action lawsuit against ODDITY Tech Ltd., a consumer technology company publicly traded on NASDAQ under the ticker symbol ODD. This filing, made in the United States District Court for the Southern District of New York, asserts that the company, along with certain officers, engaged in practices that potentially violated federal securities laws, affecting investors who acquired ODDITY securities between February 26, 2025, and February 24, 2026.

Background on the Case

The lawsuit was assigned docket number 26-cv-02046 and encompasses all individuals and entities, excluding the defendants themselves, who purchased Oddity securities within the set Class Period. The objective of the lawsuit is to reclaim damages which the plaintiffs believe were inflicted upon them due to misleading statements made by the company's officials. Potential participants are encouraged to act swiftly, as they have until May 11, 2026, to request the court's appointment as Lead Plaintiff for the class.

The Role of Oddity Tech Ltd.

ODDITY Tech Ltd. is primarily focused on creating digital-first brands tailored for the beauty and wellness sectors. The company operates its business leveraging an artificial intelligence-driven online platform, incorporating advanced data science, machine learning, and computer vision techniques to analyze consumer preferences and deliver relevant products. However, the significant reliance on advertising partnerships has raised concerns regarding the sustainability of its revenue model, particularly as it relates to customer acquisition costs, which fluctuate based on the algorithms of advertising partners.

Allegations Against the Company

The Complaint alleges that throughout the Class Period, ODDITY's executives disseminated materially false or misleading information about the company’s operations and future prospects. Specific claims highlighted in the lawsuit include:

1. A significant algorithm change by Oddity's chief advertising partner diverted ads to lower-quality auctions, resulting in abnormally high customer acquisition costs.
2. The resulting surge in these costs negatively impacted Oddity's business vitality and financial outlook.
3. Public statements made by the defendants have been characterized as not reflective of the true status of Oddity's digital market position.
4. Overall, these factors contributed to a discrepancy in the perceived strength and stability of the company’s operations.

The Deteriorating Financial Outlook

The unfolding of these issues became evident on February 25, 2026, following the announcement of ODDITY's financial results for the fourth quarter and the entire year of 2025. CEO Oran Holtzman emphasized a “dislocation” with their leading advertising partner stemming from algorithm changes that resulted in escalated costs for acquiring new platform users. CFO Lindsay Drucker Mann echoed these sentiments, warning of an anticipated 30% decline in first-quarter revenue for 2026 compared to the previous year, with hopes for recovery by the latter half of the year.

Following these revelations, the market reacted sharply, as evidenced by a steep drop in the share price of Oddity, plummeting by over 49% on the same day. This reduced the value to just $14.74 per share, highlighting the possible investor fallout from these misleading statements.

Conclusion

The Pomerantz Law Firm has established itself as a formidable entity in the realm of corporate and securities class litigation. Since its foundation over 85 years ago, the firm has dedicated itself to upholding the rights of investors and recovering damages resulting from securities fraud and corporate misconduct. Stakeholders wishing to understand their rights in relation to this class action can find more information at www.pomerantzlaw.com or contact Danielle Peyton directly for guidance.

As the situation develops, ODDITY's strategy to combat these allegations and restore investor confidence will be closely watched by market analysts and stakeholders alike.