#USA #New York #Securities Fraud #Pomerantz LLP #MediaAlpha

Investor Alert: Pomerantz Law Firm Investigates MediaAlpha, Inc.

Pomerantz LLP has initiated an investigation into the claims of investors involved with MediaAlpha, Inc. (traded under NYSE: MAX). Regulatory scrutiny and alarming allegations have recently drawn attention to the company, prompting action from legal representatives and investors alike.

Context of the Investigation

The investigation revolves around potential allegations of securities fraud and other unlawful activities purportedly conducted by MediaAlpha and certain members of its executive team. With claims of deceptive advertising practices surfacing, investors are urged to assess their options. Interested parties can reach out to attorney Danielle Peyton for more information on participation in any potential class action.

Key Allegations Against MediaAlpha

The scrutiny intensified significantly after a report was published by Wolfpack Research on June 24, 2024. This report accused MediaAlpha of engaging in consumer fraud, primarily focusing on its health insurance segment. The report asserted that:

• - MediaAlpha utilized fraudulent advertisements and misleading websites targeting consumers in search of health insurance.
• - The company allegedly collected personal information from consumers under false pretenses and sold this data as lead information to partners involved in health insurance scams.
• - A staggering 78% of its lead-buying partners reportedly run operations that blatantly violate telemarketing laws.

Following the release of these findings, MediaAlpha's market performance was negatively affected, with its stock price hitting a decline of $1.92 per share—notably a drop of nearly 12% over two trading sessions. Investors witnessed further fallout when, on November 4, 2024, MediaAlpha received notification from the Federal Trade Commission (FTC) indicating potential complaints regarding their misleading advertising tactics.

Stock Price Tumult

The company's stock dropped an alarming $4.46 per share (approximately 27.7%) shortly after the FTC's announcement on November 5, 2024. This decline illustrated the palpable investor anxiety surrounding MediaAlpha's operational practices and ongoing legal challenges.

Settlements and Continued Investigation

The situation culminated on August 6, 2025, when MediaAlpha confirmed it had reached a $45 million settlement with the FTC. The FTC's complaint detailed that MediaAlpha duped consumers with false claims while selling their information to third parties for marketing purposes.

According to FTC disclosures, MediaAlpha sold around 119 million leads about consumers in just 2024, showcasing the scale of the alleged misconduct, and indicating a pressing need for legal oversight in their operational framework.

Pomerantz's Legacy in Class Action Litigation

Pomerantz LLP stands as a significant player in handling corporate accountability issues and securities class litigation, garnering a notable reputation since its establishment. Under the leadership of founder Abraham L. Pomerantz, who was heralded as a pioneer in securities class actions, the firm has prioritized fighting for victims of various corporate wrongdoings, recovery of substantial damages for class members, and upholding the principle of legal accountability.

This human-centered approach continues as the firm engages in the investigation surrounding MediaAlpha, underscoring its dedication to investors seeking transparency and justice in the marketplace. Potential class members are encouraged to explore their legal options and join the investigation. Further details can be procured by contacting Pomerantz LLP directly.

For those closely observing developments in investor legal actions, this ongoing investigation into MediaAlpha, Inc. serves as a stark reminder of the volatile and intricate nature of securities investments and the implications of corporate ethics tied to advertising practices.