ZETA(ZETA) GlobeNewswire News Room·2024-11-15 00:33Core View - Zeta Global Holdings Corp experienced a significant decline in its share price following a short report by Culper Research, which raised concerns about the company's business practices and financial disclosures [1][3] - The short report alleges that Zeta's revenue growth and financials may be inflated due to questionable data collection practices and revenue recognition methods [3] Investigation Details - Hagens Berman is investigating the propriety of Zeta's disclosures concerning its business practices, including revenue recognition and sources of growth [2] - The investigation focuses on whether Zeta may have misled investors about its business practices and prospects [4] Allegations in the Short Report - Culper Research alleges that Zeta has formed "two-way" contracts with third-party consent farms, acting as both a supplier and buyer of consumer data, which may flatter reported revenue growth and raise round-tripping concerns [3] - Culper Research also claims that Zeta has created its own network of consent farms, which are sham websites that trick consumers into handing over their data under false pretenses, and these farms have driven 56% of Zeta's reported Adj EBITDA over the last 2+ years [3] Market Reaction - Zeta's share price crashed by $10 46, or 37%, on November 13, 2024, following the publication of the short report [3] Legal and Regulatory Context - Hagens Berman encourages investors who suffered substantial losses to submit their losses and persons with knowledge to assist the investigation [1][4] - Whistleblowers with non-public information regarding Zeta may consider their options to help in the investigation or take advantage of the SEC Whistleblower program, which offers rewards of up to 30% of any successful recovery made by the SEC [4]