Cardlytics, Inc. Class Action Lawsuit - CDLX
Case Summary
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The Cardlytics class action lawsuit seeks to represent purchasers or acquirers of Cardlytics, Inc. (NASDAQ: CDLX) securities between March 14, 2024 and August 7, 2024, inclusive (the “Class Period”). Captioned Froess v. Cardlytics, Inc., No. 25-cv-00279 (N.D. Ga.), the Cardlytics class action lawsuit charges Cardlytics and certain of Cardlytics’ top current and former executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Cardlytics class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Cardlytics class action lawsuit must be filed with the court no later than March 25, 2025.
CASE ALLEGATIONS: Cardlytics operates an advertising platform in the United States and the United Kingdom.
The Cardlytics class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) increasing consumer engagement led to an increase in consumer incentives; (ii) Cardlytics could not increase its billings commensurate with the increased consumer engagement; (iii) as a result, there was a significant risk that its revenue growth would slow or decline; and (iv) the changes to Cardlytics’ Ads Decision Engine, which led to increased consumer engagement, led to the “under-delivery” of budgets and customers billings estimates.
The Cardlytics class action lawsuit further alleges that on May 8, 2024, Cardlytics revealed that its first quarter 2024 revenue only increased 8% year-over-year, despite a 12% increase in billings, due to a 20.2% increase in consumer incentives. On this news, the price of Cardlytics stock fell more than 36%, according to the complaint.
Then, on August 7, 2024, the Cardlytics class action lawsuit alleges that Cardlytics released its second quarter 2024 financial results, revealing a 9% year-over-year decrease in revenue to $69.6 million, alongside a 3% decline in adjusted contribution to $36.4 million. The complaint further alleges Cardlytics also disclosed that Cardlytics’ CEO, defendant Karim Temsamani, had stepped down. On this news, the price of Cardlytics stock fell more than 57%, according to the Cardlytics class action lawsuit.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Cardlytics securities during the Class Period to seek appointment as lead plaintiff in the Cardlytics class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Cardlytics class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Cardlytics class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Cardlytics class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.