Cardlytics(CDLX) Prnewswire·2025-02-25 16:27Core Viewpoint - Cardlytics is facing a class-action lawsuit for allegedly misleading investors about its growth prospects, with claims that the company failed to disclose critical information regarding its financial performance and business operations [1][3][4]. Group 1: Lawsuit Details - The class period for the lawsuit is from March 14, 2024, to August 7, 2024, with a lead plaintiff deadline set for March 25, 2025 [2]. - The lawsuit, filed in the Northern District of Georgia, accuses Cardlytics and certain executives of violating the Securities Exchange Act of 1934 [2]. - Plaintiffs allege that Cardlytics made false and misleading statements regarding the impact of increased consumer engagement on financial performance, claiming that while engagement rose, it did not translate into corresponding growth in billings [4]. Group 2: Financial Performance and Stock Impact - Following the company's disclosures, two significant stock drops occurred: on May 8, 2024, after reporting only an 8% year-over-year revenue increase despite a 12% increase in billings, leading to a stock price drop of over 36% [6]. - On August 7, 2024, Cardlytics reported a 9% year-over-year decline in revenue to 36.4 million, resulting in a stock price plummet of over 57% after the announcement of the CEO's resignation [7].