The Trade Desk(TTD) Prnewswire·2025-02-25 16:29Core Viewpoint - A class action lawsuit has been filed against The Trade Desk, Inc. alleging fraudulent practices related to the rollout of its AI forecasting tool, Kokai, which has reportedly faced significant execution challenges impacting revenue growth [1][2]. Group 1: Lawsuit Details - The lawsuit represents investors who purchased The Trade Desk common stock between May 9, 2024, and February 12, 2025 [1][2]. - The complaint claims that The Trade Desk made false and misleading statements about Kokai's role in the company's growth while failing to disclose execution challenges that delayed its rollout [2][4]. Group 2: Financial Impact - On February 12, 2025, The Trade Desk reported Q4 2024 revenue that was significantly below guidance and analysts' estimates, revealing the company's struggles [3]. - Following the earnings call, where the CEO admitted to maintaining two systems and acknowledged a deliberate slower rollout of Kokai, the stock price dropped over 30%, erasing more than $18 billion in market capitalization in one day [4]. Group 3: Investigation and Response - Hagens Berman is investigating the claims and is urging affected investors to submit their losses [2][5]. - The firm is focusing on the timing and accuracy of The Trade Desk's statements regarding Kokai and whether the company was aware of the slower rollout [5].