Faruqi & Faruqi Investigates Alleged Securities Violations by Zeta Global Holdings

Faruqi & Faruqi Investigates Zeta Global Holdings

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently probing potential claims against Zeta Global Holdings Corp., a company whose reputation has come under scrutiny following recent allegations. The firm reminds investors of a crucial deadline: January 21, 2025, when those seeking the role of lead plaintiff in a federal securities class action must apply to do so.

The investigation arises from serious accusations alleging that Zeta engaged in various unlawful activities that misled investors and artificially inflated its financial results. According to the complaint, Zeta utilized deceptive practices like two-way contracts and round-trip transactions, which turned out to be fundamentally flawed. These maneuvers allowed the company to portray a more positive financial picture than was accurate, misleading stakeholders about the true state of its business.

In a detailed report published by Culper Research on November 13, 2024, it was suggested that Zeta's data collection practices seriously compromised the integrity of its reported financials. The report indicated that Zeta had formed questionable contracts with third-party consent farms, where Zeta stood as both a data supplier and a buyer. This confusing arrangement reportedly allowed the company to “flatter reported revenue growth,” raising alarms about potential round-tripping of revenues.

The allegations also highlight the troubling methods by which Zeta acquires customer data. Accusations suggest that the company runs a series of deceptive job boards designed to trick unsuspecting users into submitting personal information under false pretenses, thus generating a treasure trove of data that Zeta allegedly relies on for its growth.

On the day of the allegations, Zeta's stock experienced a dramatic fall, plummeting by over 37%, which translates to a loss of $10.46 per share, closing at $17.76 amid unprecedented trading volumes. Such severe stock volatility raises the question of inadequate investor safeguards within the company, underlining the necessity for diligent legal action.

For investors who suffered losses exceeding $100,000 from February 27, 2024, to November 13, 2024, Faruqi & Faruqi advises contacting their office directly for further discussions about legal options. This outreach includes not just the affected investors but whistleblowers and former employees who may have valuable insights.

As with all legal matters, those interested are encouraged to consider their options carefully. Becoming a lead plaintiff can be instrumental in guiding the direction of the case, although it comes with its own set of responsibilities. Conversely, individuals can also choose to remain part of the class action without taking up the lead role, preserving their rights to potential recovery in the process.

Faruqi & Faruqi, having recovered billions for investors since its establishment in 1995, remains committed to advocating for affected clients. Legal representatives emphasize that prior results do not guarantee similar outcomes in other matters, a critical reminder for prospective claimants.

For further details about this investigation or to participate in the class action, visit www.faruqilaw.com/ZETA or contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). All communications are treated with utmost confidentiality and professionalism.

In this evolving scenario, it is crucial for investors to remain updated on any developments regarding Zeta Global Holdings and the ongoing legal actions. Ensuring an informed approach will empower investors towards making sound decisions amidst the unfolding events.