Zeta Global Holdings: Investor Claims Investigation by Faruqi & Faruqi, LLP

Overview of Zeta Global Holdings Investigation

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced an investigation into Zeta Global Holdings Corp. This inquiry comes on the heels of serious allegations brought forth by a report published by Culper Research. The report claims that Zeta employed deceptive practices in its financial reporting, specifically through the use of two-way contracts and round trip transactions that misrepresent the company’s actual financial status.

Allegations Against Zeta Global

The allegations against Zeta Global Holdings are grave. It is claimed that the company misused two-way contracts allowing them to artificially inflate their financial results. Such contracts enable the entity to act as both a buyer and supplier of consumer data, thus creating a facade of revenue growth. Moreover, the report suggests that Zeta has engaged in round trip transactions that further obfuscate its financial health. This leads to a severe questioning of the integrity of the data collection protocols employed by the company.

Additionally, the inquiry extends to the means through which Zeta collects its user data. Claims have surfaced regarding the company’s use of predatory consent farms. These are websites designed to exploit consumers, often tricking them into providing personal information under the guise of legitimate activity like job applications. The report asserts that a significant portion of Zeta's growth is attributed to these misleading practices.

On November 13, 2024, after these allegations were publicized, Zeta's stock experienced a significant decline, dropping by $10.46 or 37.07%, subsequently closing at $17.76 per share. This decline reflects investor fears regarding the company’s operational transparency and adherence to federal securities laws.

Legal Proceedings and Next Steps

The law firm is urging investors who suffered losses of over $100,000 due to Zeta's alleged misconduct—specifically within the timeframe of February 27, 2024 to November 13, 2024—to reach out and discuss their potential legal options. There is a critical deadline looming; investors have until January 21, 2025, to apply to become lead plaintiffs in a federal securities class action. This role is pivotal as it allows an investor to direct and oversee the litigation process on behalf of others affected by Zeta's actions.

For investors hoping to take action, they can contact Faruqi & Faruqi directly at the numbers provided in the firm's announcement. The firm emphasizes that additional information is available on their website, where potential plaintiffs can explore their rights and options.

Any member of the affected class is encouraged to reach out, whether they want to join the lead plaintiff process or choose to remain an anonymous class member. Participation decisions do not impact one’s right to any recovery that may come from ongoing litigation.

Conclusion

In summary, the investigation by Faruqi & Faruqi highlights a troubling narrative surrounding Zeta Global Holdings. The firm is committed to ensuring that investor rights are upheld amidst these serious allegations. They also invite anyone with pertinent information, including whistleblowers and former employees, to come forward and contribute to the growing case against the company.

This situation underscores the importance of transparency and ethical practices within corporate environments, particularly in the competitive realm of data collection and financial reporting. Investors are advised to stay informed and proactive in safeguarding their investments during this period of uncertainty for Zeta Global Holdings.