#United States #New York #Class Action #Zeta Global #Wolf Haldenstein

Zeta Global Holdings Faces Class Action Lawsuit

On December 9, 2024, Wolf Haldenstein Adler Freeman & Herz LLP announced the filing of a federal securities class action lawsuit against Zeta Global Holdings Corp. This lawsuit was brought forth in the Southern District of New York on behalf of investors who acquired shares in the company, which trades on the NYSE under the ticker symbol ZETA.

Zeta Global, a platform that delivers marketing solutions powered by extensive consumer data, is facing claims that it misrepresented the quality and origin of its data set. Plaintiffs allege that Zeta falsely claimed to utilize the largest opted-in data set in the industry, but it was revealed that this data was procured through a network of so-called "consent farms." These farms consist of websites designed to gather consumer information under misleading pretenses.

A significant turning point in the unfolding situation was a report published by investment research firm Culper Research on November 13, 2024. This report alleged that Zeta's growth over the past few years was predominantly driven by these illegitimate consent farms, accounting for approximately 56% of the company’s Adjusted EBITDA. The fallout from the report was swift and severe, with Zeta's stock price plummeting 37%, dropping from $28.22 on November 12 to $17.76 the following day.

Investors who experienced losses due to the alleged misconduct are encouraged to reach out to Wolf Haldenstein. They can do so via phone or email as the firm seeks to appoint a lead plaintiff for the class action case before the January 21, 2025 deadline. The lawsuit has broad implications for not only Zeta Global but also the marketing technology industry, as the legitimacy of data sourcing becomes increasingly under scrutiny.

The lawsuit signifies a growing concern regarding transparency in the tech industry, particularly about how companies use consumer data. With regulatory agencies becoming more vigilant, companies like Zeta Global need to demonstrate accountability in their operations to maintain consumer and investor trust.

Wolf Haldenstein is no stranger to securities litigation and has gained recognition for its legal prowess in this field. The firm encourages any investors who feel they were misled to contact them for guidance on their rights. This situation serves as a crucial reminder for individuals and institutions alike to remain vigilant when investing in tech companies that operate on the edge of data collection ethics.

Anyone wishing to discuss this matter or inquire further about their rights and interests in the case is urged to reach out to Wolf Haldenstein directly. For the latest updates, additional information, and to join the case, potential plaintiffs can visit the firm's dedicated website.

As the legal proceedings develop, stakeholders will be watching closely to see how this case unfolds and what it may mean for the future landscape of data-driven marketing technology. Investors must stay informed and take action in light of this serious allegation against Zeta Global Holdings.