#USA #New York #Class Action #Pomerantz LLP #The Trade Desk

Investor Alert: Pomerantz Law Firm Issues Class Action Notice for The Trade Desk Investors

On February 25, 2025, Pomerantz LLP, a leading law firm recognized for its success in corporate and securities class litigation, announced the initiation of a class action lawsuit against The Trade Desk (NASDAQ: TTD). This action has arisen due to significant concerns over potential securities fraud or other unethical business maneuvers undertaken by The Trade Desk and specific officers or directors within the company.

Class Action Details

Investors who have suffered losses by purchasing or otherwise acquiring shares in The Trade Desk during the relevant Class Period are now urged to reach out to Pomerantz LLP. Specifically, individuals who may wish to become Lead Plaintiffs in this case must do so before the April 21, 2025, deadline. Interested parties can contact Danielle Peyton directly at [email protected] or call 646-581-9980, toll-free at 888-4-POMLAW, Ext. 7980. For effective communication, investors are encouraged to provide their mailing address, phone number, and the number of shares they acquired.

Business Context Behind the Lawsuit

The impetus for this class action stems from a concerning press release issued by The Trade Desk on February 12, 2025. The company announced its financial performance for the fourth quarter and the entire year of 2024, revealing that recorded revenue for the fourth quarter reached only $741 million. This figure notably fell short of their previously stated guidance of $756 million and analysts’ expectations of approximately $759.8 million. In addition, guidance for Q1 2025 projected revenue of at least $575 million, which again did not meet analysts' anticipations of $581.5 million.

Further heightening concerns, during a subsequent earnings call, CEO Jeffrey Green acknowledged that the rollout of their much-anticipated ad-buying platform, Kokai, had not yet reached its full potential. He characterized the situation by describing the company’s operation of two separate systems—the older Solimar platform alongside Kokai—as a necessary yet slow transition, impeding progress. An analyst's query regarding the challenges of Kokai's rollout pace was met with a candid admission by Green, clarifying that the rollout has indeed been slower than they had planned, with some of that delay deemed intentional.

Consequently, on February 13, 2025, The Trade Desk’s stock plummeted by $40.31, a staggering 32.98% decrease, causing shares to close at $81.92. This sharp decline has exacerbated concerns among shareholders, leading to the filing of the class action lawsuit.

The Role of Pomerantz LLP

Pomerantz LLP, which has offices across New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, has established a robust reputation in the realms of corporate law, class litigation, and securities. Founded by Abraham L. Pomerantz, a pioneer in securities class actions, the firm has spent over 85 years championing the rights of those affected by corporate malpractice, securing substantial damages for class members in past litigations. Their commitment remains steadfast in combatting instances of securities fraud and violations of fiduciary duty.

For investors affected by The Trade Desk’s recent financial disclosures and stock performance, this class action represents an opportunity to take a stand. Those seeking to participate can find further information, including the official Complaint, through Pomerantz’s website at www.pomerantzlaw.com.

Conclusion

As this situation develops, it serves as a pointed reminder of the volatility inherent in the tech and online advertising sectors, where investor sentiment can swiftly swing based on corporate performance and transparency. Individuals who have invested in companies like The Trade Desk should remain vigilant and consider their options in light of such significant legal actions. Take heed of the upcoming deadlines and ensure you secure your rights as an investor during this critical juncture.