SAN FRANCISCO, Nov. 28, 2024 (GLOBE NEWSWIRE) -- Zeta Global Holdings Corp. (NYSE: ZETA) and certain of its top executives are now the target of a securities class action.
Hagens Berman is investigating the allegations and urges investors in Zeta who purchased shares and suffered substantial losses to submit your losses now.
Class Period: Feb. 27, 2024 – Nov. 13, 2024
Lead Plaintiff Deadline: Jan. 21, 2025
Visit: www.hbsslaw.com/investor-fraud/zeta
Contact the Firm Now: ZETA@hbsslaw.com
844-916-0895
Zeta Global Holdings Corp. (ZETA) Securities Class Action:
The complaint alleges that throughout the Class Period, Defendants misrepresented and concealed material adverse facts about the Zeta’s business, operations, and prospects.
Specifically, Defendants failed to disclose to investors: (1) that Zeta used two-way contracts to artificially inflate financial results; (2) that Zeta engaged in round trip transactions to artificially inflate financial results; (3) that Zeta utilized predatory consent farms to collect user data; (4) that these consent farms have driven almost the entirety of Zeta’s growth; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The truth emerged on Nov. 13, 2024, when activist short seller Culper Research published a report entitled “Zeta Global Holdings Corp (ZETA): Shams, Scams, and Spam.” The report alleged that the “integrity of the Company’s data collection and reported financials” is severely undermined by two factors.
First, the report alleged that “Zeta has formed ‘two-way’ contracts with third party consent farms wherein the Company simultaneously acts as both a supplier and a buyer of consumer data,” allowing the Company to “flatter reported revenue growth” and indicating possible “round-tripping” of revenue.
Second, the report alleged that Zeta’s collects the majority of its customer data from a network of “sham websites that hoodwink millions of consumers each month into handing their data over to Zeta under false pretenses.” For example, the report alleged the Company and its subsidiaries operate a number of fake job boards which are designed to trick individuals into submitting personal data under the pretense of job applications.
The report further alleged that the Company’s “most valuable data” comes from these predatory websites, dubbed consent farms, which are “responsible for almost the entirety of the Company’s growth.”
On this news, the Company’s stock price fell 37% over a single trading day.
“We’re focused on whether Zeta may have inflated its financial performance by engaging in ‘round tripping’ of revenue,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Zeta and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Zeta Global case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Zeta Global Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ZETA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
