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Faruqi & Faruqi Alerts DoubleVerify Investors About Class Action

In an important update for investors of DoubleVerify Holdings, Inc. (NYSE: DV), the national securities law firm Faruqi & Faruqi, LLP has formally announced the investigation of potential claims related to the company. The firm is reminding all impacted investors that the deadline to seek the role of lead plaintiff in a pending class action lawsuit is set for July 21, 2025.

This class action lawsuit stems from allegations that DoubleVerify and its executives violated federal securities laws by knowingly or unknowingly disseminating false and/or misleading statements about the company's operations and financial health. Specifically, the lawsuit claims that the company's technology was limiting its ability to effectively compete, which eventually led to significant financial losses for its investors.

Allegations Against DoubleVerify

The complaint outlined various key accusations against DoubleVerify, including:

• - Customer Behavioral Shift: It is alleged that a substantial number of DoubleVerify's clients were redirecting their advertising budgets from open exchanges to closed platforms. These closed platforms, which include major competitors like Meta and Amazon, posed challenges for DoubleVerify as their technological capabilities in these environments fell short.
• - Monetization Limitations: The lawsuit states that DoubleVerify faced limitations in monetizing its high-margin advertising optimization services, known as Activation Services. The costs associated with developing their technology for closed platforms were reportedly much higher than disclosed to the investors, leading to misrepresentations regarding potential profitability.
• - Delayed Monetization: It’s further alleged that these Activation Services would take several years to develop adequately, which the company did not make clear to its investors.
• - Competitor Edge: The complaint suggests that DoubleVerify's competitors were better positioned to leverage AI technologies, further impairing the company's competitiveness and impacting profit margins.
• - Overbilling Practices: The lawsuit claims systematic overbilling of customers for ad impressions that were served to known bots, raising questions about the integrity of their financial reporting.

The Stock Impact

The truth regarding these supposed misrepresentations allegedly came to light on February 27, 2025, when DoubleVerify reported disappointing fourth-quarter sales and earnings. These results were attributed to a decrease in customer spending and the suspension of services from a large client. Following this news, the stock price of DoubleVerify plummeted by 36%, from $21.73 to $13.90, reflecting a drastic drop in investor confidence and market value.

Act Now: Investor Options

Faruqi & Faruqi’s team encourages all investors who acquired shares of DoubleVerify between November 10, 2023, and February 27, 2025, and experienced financial losses, to reach out for legal advice. Interested parties can contact Josh Wilson, a partner at Faruqi & Faruqi, directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss potential legal actions.

In light of these developments, it's crucial for investors to stay informed about their legal rights. This class action serves as a pivotal opportunity for investors not only to seek compensation for losses but also to ensure accountability among corporate executives for their decisions and disclosures.

Faruqi & Faruqi, LLP has a rich history of recovering significant sums for investors since its inception in 1995, making them a trusted partner for navigating complex securities litigation. More information on the DoubleVerify case can be found at www.faruqilaw.com/DV.

For further updates, keep an eye on their LinkedIn or follow them on social media platforms such as X and Facebook. This communication serves as attorney advertising, and your confidentiality will be respected in all discussions. Be proactive and protect your investment!

Disclaimer: The information provided in this article does not constitute legal advice and should not be considered as such. For personalized legal guidance, always consult with a qualified attorney.