Faruqi & Faruqi Alerts DoubleVerify Investors About Class Action Lawsuit Deadlines

Legal Alert for DoubleVerify Investors

Faruqi & Faruqi, LLP, a prominent national firm specializing in securities law, has brought significant news to the attention of investors in DoubleVerify Holdings, Inc. The law firm is currently investigating the possibility of claims stemming from the company’s recent market activities. Investors who sustained losses exceeding $75,000 during the period from November 10, 2023, to February 27, 2025, are being encouraged to discuss their legal options before the approaching deadline of July 21, 2025, to file as lead plaintiffs in the class action lawsuit.

Background on DoubleVerify

DoubleVerify is listed on the NYSE under the ticker symbol DV and provides technology solutions aimed at improving the effectiveness of digital advertising campaigns. However, recent analysis reveals that the company’s management may have issued misleading statements regarding its operations and business practices that significantly impacted its stock value.

Allegations Against DoubleVerify

The core of the allegations revolves around claims that DoubleVerify’s executives misled investors by failing to acknowledge critical issues affecting the business:
1. Ad Spending Shift: It was reported that clients began reallocating their advertising budgets from open exchanges to closed platforms, which limited the company’s technological advantages and eliminated significant competition.
2. Monetization Issues: There are claims that the firm’s ability to monetize on its high-margin Activation Services was heavily restricted, with the development of technology for these closed platforms being much more costly and complex than previously articulated.
3. Delayed Profit Realization: The company’s services related to closed platforms were said to require several years before they could generate meaningful revenue, contrary to investor expectations.
4. AI Competitive Landscape: While competitors may have been better equipped to incorporate artificial intelligence into their services, this undercut DoubleVerify's capacity to compete effectively.
5. Overbilling Practices: Allegations also surfaced that DoubleVerify had been overcharging clients for ad impressions linked to non-human traffic, which undermined the integrity of their business practices.
6. Misleading Risk Disclosures: The risk disclosures issued by the company downplayed the severity of these concerns, framing them as mere possibilities when they were actual risks materializing.

The alleged misrepresentation culminated on February 27, 2025, when DoubleVerify reported disappointing fourth-quarter sales and earnings. This was due partly to a notable decline in customer ad spending and the cessation of service by a major client. In light of this revelation, DoubleVerify’s stock plummeted by 36%, dropping from $21.73 to $13.90 per share overnight.

Next Steps for Investors

To qualify as a lead plaintiff, an investor must be the one with the most significant financial interest in the case and be representative of the class members involved. It’s essential for any affected investor to seek legal counsel, either to take a proactive stance as a lead plaintiff or to remain an unnamed class member. The decision to act as a lead plaintiff does not impact the eligibility for recovery should an outcome be reached.

Faruqi & Faruqi also welcomes insights from any individual with information related to DoubleVerify’s actions, such as whistleblowers, former employees, or investors. Those interested can reach out to the firm directly to learn more about the ongoing investigations and lawsuits.

For further information on the class action lawsuit against DoubleVerify Holdings, contact partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310). Interested parties can also visit Faruqi & Faruqi’s website for comprehensive updates and legal information regarding this case.