Class Action Lawsuit Filed Against Cardlytics Inc. for Investor Losses

Investor Alert: Cardlytics Inc. Faces Class Action

On February 7, 2025, Bronstein, Gewirtz & Grossman LLC, a prominent law firm known for handling securities fraud cases, officially announced the commencement of a class action lawsuit against Cardlytics Inc. This lawsuit aims to represent investors who suffered significant financial losses from their investments in Cardlytics between March 14, 2024, and August 7, 2024.

Background of the Lawsuit

The class action seeks to address alleged violations of federal securities laws committed by Cardlytics and certain of its executives. The firm encourages all affected investors to participate in the case, particularly those who acquired Cardlytics securities during the specified period. As the lawsuit progresses, it will consider claims that misleading statements and omissions regarding the company's operations impacted stock performance and investor decisions adversely.

Allegations Against Cardlytics

The complaint outlines several critical issues associated with Cardlytics' conduct during the class period:
1. False or Misleading Statements: The defendants allegedly made materially inaccurate statements about the company’s business prospects and operations, which failed to reflect the truth regarding its financial health.
2. Non-disclosure of Risk Factors: Key information regarding the company's increasing consumer engagement and the subsequent need for more consumer incentives was not disclosed. Additionally, concerns were raised about the company’s inability to scale its billings in line with consumer engagement.
3. Revenue Growth Concerns: The lawsuit underscores a significant risk of a slowdown or decline in revenue growth, exacerbated by the changes to the Average Daily Expenditure (ADE), leading to what was described as