Pomerantz Law Firm Initiates Class Action Against ODDITY Tech Ltd. and Its Executives

Class Action Lawsuit Filed by Pomerantz Law Firm Against ODDITY Tech Ltd.

Pomerantz Law Firm has announced the filing of a class action lawsuit against ODDITY Tech Ltd. (NASDAQ: ODD) and certain of its executives. This lawsuit was filed on March 26, 2026, in the United States District Court for the Southern District of New York under the docket number 26-cv-02046. The class action represents all individuals and entities (except the defendants) who acquired ODDITY securities between February 26, 2025, and February 24, 2026, thus seeking damages associated with alleged violations of federal securities laws.

The complaint focuses on sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alongside Rule 10b-5. Investors affected by ODDITY’s alleged misconduct are urged to apply to become lead plaintiffs by the deadline of May 11, 2026. Interested parties can refer to the Pomerantz Law website to obtain the complaint and details on joining the class action.

Background on ODDITY Tech Ltd.

ODDITY Tech Ltd. is a prominent player in the consumer technology industry, known for developing digital-first brands focused on beauty and wellness sectors. The company operates an artificial intelligence-driven platform designed to meet customer needs through data science and machine learning techniques. ODDITY's revenue model heavily relies on advertising partners, whose algorithms significantly affect customer acquisition costs and sales growth.

The health of ODDITY’s advertising auctions is critical; high-quality auctions result in lower costs per click (CPC) for ads, while poor-quality auctions increase acquisition costs. Notably, during the class period, the lawsuit alleges that ODDITY failed to disclose key information leading to unexpectedly high expenses in customer acquisition due to changes made by their major advertising partner. This lack of transparency is said to have misrepresented the company’s operational stability and market position.

Allegations Against ODDITY

According to the lawsuit, ODDITY's executives made misleading statements that inflated the company's perceived business health and prospects. The allegations include claims that:
1. A significant algorithm change by ODDITY's top advertising partner diverted the company’s ads to lower quality auctions, resulting in increased customer acquisition costs.
2. The increase in these costs weakened ODDITY's financial stability and business outlook, which was not communicated to investors.
3. The overarching narrative of ODDITY’s digital model being robust and sustainable was fundamentally flawed, as executives failed to disclose critical operational shifts.

On February 25, 2026, ODDITY published its financial results for the fourth quarter and full year ended December 31, 2025, bringing the issues to light. The CEO of ODDITY commented on a dislocation from their advertising partner due to the algorithm changes, which resulted in a dramatic 30% expected decline in revenue for the first quarter of 2026 compared to the previous year.

Following this announcement, ODDITY’s stock price plummeted by 49.21% on February 25, closing at $14.74 per share.

About Pomerantz Law Firm

Pomerantz LLP is well known for its extensive experience in corporate and securities law, focusing on protecting investors' rights against corporate misconduct. Founded decades ago by Abraham L. Pomerantz, the firm has a history of significant recoveries on behalf of investors, positioning itself as a leader in the field of securities class actions. With offices in key cities worldwide, Pomerantz continues to advocate for victims of financial fraud.

For those who are interested in the proceedings or wish to learn more about this legal action against ODDITY Tech, they can reach out to Danielle Peyton at Pomerantz LLP via phone or email for more information.