Investors Alert: Class Action Against Cardlytics, Inc. Deadline Approaches

Overview of the Cardlytics Class Action

Robbins LLP has issued a vital reminder to shareholders of Cardlytics, Inc. regarding an upcoming deadline in a class action lawsuit. This alert is especially important for those who purchased or acquired Cardlytics securities between March 14, 2024, and August 7, 2024. The class action arose due to alarming allegations against the company, which provides an advertising platform operating in both the U.S. and the U.K.

Background of the Case

The complaints, as cited in the legal proceedings, highlight that during the period in question, there were significant failures in the disclosures made by Cardlytics to its investors. Specifically, it is alleged that the company did not properly communicate several concerning factors:

1. Increased Engagement Yet Hidden Risks: Despite increased consumer engagement, there was no corresponding increase in billings. This disparity indicated that Cardlytics could potentially face a slowdown or decline in revenue growth, a risk that was not disclosed to investors.

2. Underdelivery in Budgets: Alterations made to the company’s Ad Decision Engine resulted in unexpected outcomes, including the 'underdelivery' of budget and billing estimates to customers, leading to further concerns about financial performance.

3. Revealing Financial Results: The tipping point came on August 7, 2024, when Cardlytics announced its second quarter financial results. The report revealed a worrying 9% decrease in revenue compared to the previous year, totaling $69.6 million. Further compounding the concern, the adjusted contributions fell by 3% to $36.4 million, and the CEO resigned from the Board of Directors, triggering a dramatic fall in the stock price by 57.1% to $2.96 per share the following day.

Participation in the Class Action

Shareholders who wish to engage in the class action as a lead plaintiff must file the necessary documentation with the court by March 25, 2025. It is crucial to understand that while acting as a lead plaintiff represents the interests of all class members, participation is not required to seek financial recovery. Investors can elect to remain absent class members if they prefer.

Robbins LLP operates on a contingency fee basis, meaning investors will incur no fees or expenses unless they recover losses.

About Robbins LLP

Since 2002, Robbins LLP has gained a reputation as a leader in shareholder rights litigation, advocating for investors to recover financial losses and push for enhanced corporate governance. Investors are encouraged to stay informed about class actions and potential recoveries through options such as signing up for alerts via Stock Watch.

Conclusion

With the March deadline approaching, it’s imperative for impacted Cardlytics investors to act promptly and consult with legal counsel to explore their options in this class action. Investing is not without risks, and awareness of these developments is essential for protecting shareholder interests.

For more information, individuals can submit inquiries, reach Attorney Aaron Dumas, Jr., or call Robbins LLP directly at (800) 350-6003.