NEW YORK, Aug. 23, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Oddity Tech Ltd. (“Oddity” or the “Company”) (NASDAQ: ODD) securities during the period of July 19, 2023 to May 20, 2024, inclusive (“the Class Period”). Investors have until September 17, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On May 21, 2024, the short-seller Ningi Research published a report on Oddity that alleged that the Company “completely misled investors about every critical aspect of its business,” particularly regarding its AI technology capabilities. The Company had attributed repeat sales and customers to its AI technology’s ability to generate hyper-personalized product suggestions for customers, but the Ningi Report found that Oddity’s “repeat purchase rates” were actually attributable to “customers unknowingly enter[ing] into non-cancelable plans” that allow the Company “to recognize repeat purchases in the following quarters even though the customers don’t want the product.” According to the Ningi Report, Oddity’s “product-matching technology” was more akin to a “normal questionnaire.”
Ningi also asserted that it had “found hundreds of undisclosed lawsuits filed against ODDITY and its subsidiaries in the US and Israel, frequently alleging unpaid bills and violations of consumer protection laws.” The Ningi Report alleged that the Defendants were engaged in a pump-and-dump scheme, documenting instances of insider selling by its executives. On this news, the price of Oddity Class A shares declined by $3.02 per share, from $40.99 on May 20, 2024, to close at $37.97 on May 21, 2024.
The lawsuit alleges that Oddity made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, the Company made false and/or misleading statements and/or failed to disclose that: (i) Oddity overstated its AI technology and capabilities and the extent to which this technology drove the Company’s sales; (ii) Oddity’s repeat purchase rates and revenues were, in part, derived from unsustainable and deceptive sales and advertising practices; and (iii) Oddity downplayed the true scope and severity of ongoing civil litigation against the Company and/or its subsidiaries.
If you purchased or otherwise acquired Oddity securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
