#United States #San Diego #Class Action #Robbins LLP #The Trade Desk

Robbins LLP Opens Class Action for TTD Shareholders

SAN DIEGO, March 4, 2025 - Robbins LLP has taken action to assist stockholders who have faced substantial losses in The Trade Desk, Inc. (NASDAQ: TTD). A class action lawsuit has been initiated for all individuals and entities that purchased Class A common stock of The Trade Desk between May 9, 2024, and February 12, 2025. This move comes in light of significant difficulties the company encountered while implementing its new platform, Kokai.

The Trade Desk operates as a cloud-based advertising technology firm, allowing marketers to handle ad campaigns in an efficient, self-service manner. However, throughout the specified period, a series of execution challenges caught the attention of Robbins LLP’s legal team. The complaints allege the company's management misled investors regarding the overall prospects of the business.

Background on Allegations

During the class period, it was claimed that The Trade Desk's administration failed to disclose critical issues surrounding the Kokai transition. Key allegations state that:
1. The implementation of Kokai was plagued with self-inflicted execution issues in transitioning clients from the older platform, Solimar.
2. These challenges severely delayed the rollout of Kokai, hampering the company’s operations and revenue growth.
3. As a consequence, the optimistic communications from the company regarding its performance were deemed materially misleading and lacked substantial support.

On February 12, 2025, The Trade Desk announced its financial results for the fourth quarter and full year of 2024. Notably, revenue for the fourth quarter was reported at $741 million, falling below both the company's prior guidance of $756 million and analysts' expectations of $759.8 million. Furthermore, guidance for the upcoming first quarter of 2025 was set at a minimum of $575 million, which also missed analysts’ predictions of $581.5 million. The CEO acknowledged the slower rollout of Kokai, noting that in some cases, it was a deliberate decision, further fueling concerns among stakeholders.

Following this announcement, the stock experienced a dramatic decline, plunging over 32% from a closing price of $122.23 on February 12 to $81.92 on February 13, signaling widespread investor disappointment and a loss of trust.

Next Steps for Affected Stockholders

Stockholders who have been affected by these developments may be entitled to participate in the class action against The Trade Desk. Those interested in serving as lead plaintiffs must submit their documentation with the court by April 21, 2025. A lead plaintiff is charged with representing the interests of fellow class members throughout the litigation process. Importantly, choosing not to participate does not preclude stockholders from being eligible for potential recovery.

Robbins LLP assures that all legal representation is provided on a contingency fee basis, meaning no upfront fees or expenses are incurred by shareholders pursuing legal avenues.

About Robbins LLP

Since 2002, Robbins LLP has established itself as a leader in shareholder rights litigation, committed to helping investors regain losses and advocate for improved corporate governance. To stay updated on settlements or alerts regarding corporate misconduct, interested parties can subscribe to Stock Watch.

For inquiries or further details about joining the class action or obtaining legal representation, shareholders can reach out by filling out a form, emailing attorney Aaron Dumas, Jr., or calling (800) 350-6003.

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